NVDA update: Algos buys anchor vwap on 3 February – now we are seeing what it holds
NVDA and Langer VWAP (Purple Line)
NVDA traders and investors, Machines anchored VWAP only in NVIDIA (NVDA)Drawn from February 3 major low (~ $ 130.24)As the value was pulled back, algo-driven shopping emerged, strengthening this level as a major support.
What does this mean:
- Anchor VWAP held in the first TestIn institutional interest.
- If price Is above $ 130Can rebuild at speed $ 138- $ 142,
- Break below $ 130 Will shift focus to lower support areas.
🚨 Seeing now: Will it be a level or will it break? with Earning in 2 days (26 February)Hope of instability. Be cautious for confirmation or failure in this VWAP zone.
Understanding Vwap with anchor: a major institutional trading equipment
What is an anchor vwap?
Langer volume weighted average value (AVWAP) There is a technical indicator that provides traders and investors with a price benchmark, which is weighted by a specific point in time. Unlike traditional Vwap, which resets daily, Anchor VWAP allows traders to “langar” calculations for important market eventsSuch as earning reports, major high/climbing, or brakeout levels.
How is the anchor calculated?
The formula of the anchor vwap is:
Where:
- price Each transaction has trade value.
- Volume The business represents the number of shares/contracts.
- Yoga is Cumulative Next to the chosen “anchor point”.
By anchoring VWAP for a specific date or event, traders can see how the value behaves Fair price area Determined by institutional activity.
Why does Vwap talk?
Institutions and algorithms often anchor VWAP as one Dynamic support or resistance levelEspecially on significant twist points in the market.
Why AVWAP important reasons are important:
- Institutional Benchmark: Many hedge funds, mutual funds, and trading algorithms use Avwap to assess whether they are purchasing or selling at a favorable price relative to the average transaction costs.
- Support and Resistance Area: If the price is trading Over anchor vwapIt suggests that buyers are under control; If the price falls Under itThe sellers can be prominent.
- Liquidity and mean reversal: The value often moves towards AVWAP, acts as one Magnet for liquidity Where big players deposit or distribute shares.
- Breakout and Retest Confirm: When the value crosses AVWAP with a strong volume, it can indicate Continuous breakoutIn contrast, failure to catch avwap may indicate the weakness of the trend.
- Event-based trading: Earnings reports, FOMC meetings, or major high/climb Context How the market participants are deployed.
Now it matters to Nvidia (NVDA)
In the current NVDA setup, AVWAP is anchor for the main February 3 low (~ $ 130.24)As the value reflects this level again, algos and institutional players appear to defend it. If it holds it, we can see the steps for buyers to step of potential continuity. However, a breakdown below AVWAP can give a signal indication Weak speed and further negative risk,
🔎 Major levels to see: Will AVWAP support or break?
with Earning in two days (26 February)At this stage, NVDA’s response will be important in shaping short -term value action. Go to forexlive.com for more updates.