Chip refers to the tradable shares that can be traded freely in the stock market. No matter how the stock price and the number of transactions change, the total amount of chips will not change in a certain period of time, no matter how other changes. When the main force has identified a stock and wants to start speculation, it should buy the stock at a low price. This behavior is to attract funds. When they have enough stocks, the so-called chip control means that they can easily raise the stock price. The more chips they get, the more they can control the market.
As the main force to control the stock, it often goes through five stages: trial, financing, washing, pulling up and shipping. The first three stages take a long time, ranging from three months to two to three years. If you are a retail investor, it will take a long time to buy blindly and wait for the arrival of the main rising wave. By referring to the chip distribution map, we can know which stage the main force is in, and then properly intervene in the final dish washing stage, so the chances of keeping up with the main force rhythm are also increased. In addition to being able to judge the main control situation, we can also make full use of the effective support level and pressure level of individual stocks by observing the chip distribution map, clear positions when falling below the support level, or lighten positions on rallies when it is difficult to cross the pressure level, so as to reduce the losses that stocks may bring to themselves when they are pulled back at a high level.