tradeCompass for RTY (Russell 2000)

tradeCompass for RTY (Russell 2000) – February 27, 2025

Trade Plan: Short Setup on Russell 2000 with Staggered Scaling

At the time of this analysis, RTY is at 2192.5, and today’s tradeCompass today is designed to fade the move, meaning we are entering a short position using a three-step entry approach with clear partial exits and a stop-loss level.

For those trading the Russell e-mini (RTY, 5 contracts per step), an alternative is to trade 15 micro contracts (M2K) for more granular risk management and execution flexibility.

Short Entry Levels (Scaling In)

We are placing three short entries at key resistance zones:

1. 2192.5 – Aligned with the highest point of yesterday’s VWAP. So already now we can start scaling into the short (5 contracts)
2. 2194.5 – Aligned with key levels from January 10 and January 13. (5 contracts)
3. 2195.7 – First upper standard deviation of yesterday’s VWAP. (5 contracts)

This staggered entry allows depth, flexibility, and precision, making it possible to scale in and out rather than committing to one single level.

Stop-Loss: 2198.4

• Still below the Value Area High (VAH) of February 24 (2201.8) – If the price grinds into this zone, it negates our short thesis. And if RTY gets there, it goes above the key levels identified and may be sucked into the 2200 round number, so we stop beforehand.

Partial Profit Targets for the RTY Bear (Scaling Out)

1. 2189.4 – Quick profit, aligned with the Value Area High (VAH) of February 25 at 2189.3. Take out, for example, 2 contracts.
2. 2186.3 – Just above yesterday’s VWAP. Take out, for example, 2 contracts…
3. 2183.9 – The VWAP of today’s session (real-time dynamic level).
4. 2181.2 – Point of Control (POC) of today – strong liquidity area.
5. 2179.0 – Just above yesterday’s POC.
6. 2176.7 – Above the VWAP of February 25 and the first lower standard deviation of yesterday’s VWAP.
7. 2171.3 – Key support zone, aligning with yesterday’s and two days ago’s VAL.
8. 2160.5 – Second lower standard deviation of VWAP from February 25, a potential final stretch target.

RTY Futures Market Context & Additional Considerations

• If the price reverses at 2190.7 (yesterday’s VAH), it might not reach our first entry.
• If momentum shifts downward before our entries are filled, traders can still use this analysis as orientation for managing their own short trades, and use the partial profits above as an orientation.
• Scalping machines are likely to trigger reactions at our levels, making partial exits legit.
• This trradeCompass does not include a bullish alternative today, as today’s plan is structured only for fading the move.

Final Notes

• Trade at your own risk and use this analysis as a second opinion or validation for your own strategies. This is not financial advice.
• For additional market insights, visit ForexLive.com.