It is well known that there are many graphics in the stock market, and every investor entering the stock market needs to understand the general types of graphics. Moreover, the chip distribution chart is the most important among common graphics. In the chart, the amount of the main force's purchase depends on whether the retail investors' chips held at high levels have been cut off at low levels.

Is chip distribution useful?

Chip distribution is useful. Through the indicator of chip distribution, investors can see the distribution patterns of many major and retail chips. Especially when the chips are intensive, being able to pull up at any time does not mean that it will rise immediately, nor does it mean that it will definitely rise.

What are the main functions of chip distribution?

The prominent role of chip distribution technology is to identify resistance levels and pressure levels, judge the involvement and analysis between operating trends and buying and selling opportunities, investors It needs to be paid attention to and understood. In the chip distribution chart, each chip peak formed during the trading process is a support and resistance level defined for stock price fluctuations. When the stock price rises, the chip peak is the resistance level, and when the stock price falls, the chip peak is the support level.

Moreover, it can be seen from the chip distribution chart that when the largest chip peak is accumulated at the bottom and the stock price leaves the bottom area, investors can buy and build positions. If this huge chip peak can be broken upward, it means that the role of the chip peak will be transformed from resistance to support, and the stock price will usher in a new wave of rising trends.

If the chip peak moves upward to form the largest chip peak at the top and the stock price falls away from the top area, investors can sell the stock along with the trend. If the stock price finally falls below this huge chip peak, it means that the role of the chip peak will be transformed from support into resistance, and the stock price will usher in a new wave of decline in the future.

In general, the main importance of chip distribution is the basis for investors to judge whether to buy or sell. If investors buy in a falling market, unnecessary losses will occur. Therefore, it is very necessary to learn to look at the chip distribution chart, and the main force's accumulation of funds can also be distinguished through the chip distribution chart.