Nasdaq roadmap: Mapping the path to liquidity pool through standard deviation projections

We start this blog by stating that the following analysis is done in good faith and for eductional purposes only. It should never be construed as investment advice. Today we are going to do a full indepth analysis on Nasdaq from an algorithmic trading point of view. We look at Nasdaq from a monthly and 4 hourly point of view.

The monthly perspective:

The monthly chart gives a broader perspective. Often times investors do not look at the monthly chart as they do not know the power of the monthly chart. The monthly chart supersedes all other chart lower timeframes. Price might look like it is falling on the lower timeframes but on the monthly timeframe it might still be rising. Here we show the monthly chart of nasdaq. We have divided this chart into the 4 quarters of 2025. This gives a framework to target liquidity.

We are now in the 4th quarter. We have had a raid of liquidity of Q3 high shown by the blue line. Price has now sold off. We now look at where the liquidity resides. These are usually the lows of the monthly candle. But the most important low with a lot of liquidity is the Q3 2025 low which is at 22340. We have shown this with a green line. This would be our ideal target. Remember these are expectations only and we assess price action each week to see if our underlying premise is right or wrong.

The above is the 4 hours chart of nasdaq. This is what we call as a market maker buy model of the nasdaq. There is a consolidation. This is shown by the blue shaded area. Following the consolidation, the market moves up. Then there is distribution where price is distributed and price goes below the original consolidation.

If we draw a standard deviation projection, the 3 standard deviation projection at 22909 projects below the original consolidation and this is where we are looking for price to go. We will maintain our shorts and take profits along the way. If price do not behave the way we believe it should, then we will close our positions.

These are our current positions. May there be peace with you all.