? NVDA Up Algos Buy the Anchored VWAP from Feb 3 Low—Now Watching if It Holds
NVDA traders and investors, machines just stepped in at NVIDIA's (NVDA) anchored VWAP, drawn from the Feb 3 major low (~$130.24). As price pulled back, algo-driven buying emerged, reinforcing this level as key support.
? What This Means:
Anchored VWAP held on first test—suggesting institutional interest.If price holds above $130, momentum could rebuild toward $138-$142.A break below $130 would shift focus to lower support zones.? Now Watching: Will this level hold or break? With earnings in 2 days (Feb 26), expect volatility. Stay alert for confirmation or failure at this VWAP zone. ?
Understanding Anchored VWAP: A Key Institutional Trading Tool
What is Anchored VWAP?
The Anchored Volume Weighted Average Price (AVWAP) is a technical indicator that provides traders and investors with a price benchmark, weighted by volume, from a specific point in time. Unlike the traditional VWAP, which resets daily, Anchored VWAP allows traders to "anchor" the calculation to significant market events, such as earnings reports, major highs/lows, or breakout levels.
How is Anchored VWAP Calculated?
The formula for Anchored VWAP is:
AVWAP=∑(Price×Volume)∑VolumeAVWAP = frac{sum (Price times Volume)}{sum Volume}Where:
Price is the trade price at each transaction.Volume represents the number of shares/contracts traded.The summation is cumulative from the chosen "anchor point" forward.By anchoring VWAP to a specific date or event, traders can see how price behaves relative to a fair value zone determined by institutional activity.
Why Does Anchored VWAP Matter?
Institutions and algorithms often reference Anchored VWAP as a dynamic support or resistance level, especially at significant turning points in the market.
? Key Reasons Why AVWAP is Important:
Institutional Benchmark: Many hedge funds, mutual funds, and trading algorithms use AVWAP to assess whether they are buying or selling at a favorable price relative to average transaction cost.Support & Resistance Zones: If price is trading above Anchored VWAP, it suggests buyers are in control; if price falls below it, sellers may be dominant.Liquidity & Mean Reversion: Price often gravitates toward AVWAP, acting as a magnet for liquidity where large players accumulate or distribute shares.Breakout & Retest Confirmation: When price crosses AVWAP with strong volume, it can signal a sustained breakout. Conversely, a failure to hold AVWAP may indicate trend weakness.Event-Based Trading: Anchoring VWAP to earnings reports, FOMC meetings, or major highs/lows provides context for how market participants are positioned.Why This Matters for NVIDIA (NVDA) Now
In the current NVDA setup, AVWAP is anchored to the major Feb 3 low (~$130.24). As price revisits this level, algos and institutional players appear to be defending it. If it holds, we may see buyers step in for a potential continuation move. However, a breakdown below AVWAP could signal weaker momentum and further downside risk.
? Key Level to Watch: Will the AVWAP Support Hold or Break? With earnings in two days (Feb 26), NVDA’s reaction to this level will be crucial in shaping short-term price action. Visit ForexLive.com for more updates.
This article was written by Itai Levitan at www.forexlive.com.Hence then, the article about algos buy the anchored vwap at nvda stock will it later hold was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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