Nasdaq futures technical analysis: A contrarian Long!

Nasdaq technical analysis on the daily candlestick chart

• The chart image below shows the latest update on 21 Dec, 2022: Price broke out of the bull channel (yellowish channel below) and passed the RVWAP on the 1 hour timeframe, according to Nasdaq futures technical analysis (rolling VWAP of December). Traders may elect to remain Long till the price returns to that channel or falls below this week's low of 11043.50.

• When trading or investing, a contrarian is someone who goes against the grain of popular opinion. Contrary investing entails making financial judgments that fly in the face of popular opinion or conventional knowledge.
• To capitalize on market mispricings, "contrarian" investors and traders often adopt stances that run counter to the general market consensus. Market inefficiency and price discrepancies are two things they fear, therefore they take unpopular stances in the hopes of profiting from them.
• Going against the herd while investing or trading may be dangerous since the results are often unpredictable. It's true that a contrarian investor or trader stands to gain a lot of money if their predictions come true and the market turns in their favor.
• It's essential to distinguish between true contrarianism and being contrary for its own sake while investing or trading. Instead, it is a methodical and deliberate strategy for investing and trading based on the conviction that certain stocks or asset classes are being mispriced by the market.
• In trading the Nasdaq as the above technical analysis video shows, the contrarian approach is justified via the high reward vs. risk
• Within the trade idea (Long on Nasdaq futures Futures Futures or a futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specified time in the future. Of note, the parties are not known to each other.These transactions usually involve commodities or other securities involving the buying and selling for a forward or predetermined price.Futures also adhere to a delivery date, which specifies the date of delivery and payment. Relative to other forms of investing futures are much more complex, as Futures or a futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specified time in the future. Of note, the parties are not known to each other.These transactions usually involve commodities or other securities involving the buying and selling for a forward or predetermined price.Futures also adhere to a delivery date, which specifies the date of delivery and payment. Relative to other forms of investing futures are much more complex, as Read this Term, according to the daily chart), the technical logic is there, too. We don't just set a stop and profit target at random places, nor do we set them just because they serve in calculating our reward vs. risk. Rather, we look at the volume profile, its PoC (Point of Control), its VAL (value area low), VAH (value area high) and a regression channel that identifies a price pattern and predicts price fluctuations as the channel is drawn around a linear regression line.

Trade Nasdaq at your own risk and return to ForexLive technical analysis for additional perspectives.