Chip distribution is a static concept. Through the chip distribution map, we can relatively accurately understand how many circulating chips are distributed in a stock at a certain time and price, and whether all circulating chips are densely distributed in a narrow price range or widely distributed in an open range.
1, a large proportion of profits, indicating that the stock price is at a high level, there is upward pressure, and it is not appropriate to intervene, but at this time the stock value is the highest.
2, the profit ratio is small, the stock price is at a low level, the decline is supported, the upside is large, and the position can be opened at low cost, but the stock value is low at this time.
Extended data
The method of judging the buying and selling points by chips;
First, the first form, the transaction volume broke through the low peak density.
Key points: After a long period of stock price consolidation, mobile chips are distributed at a low level, forming a single peak density. A stock price breaking through a single peak is usually a sign of a rising market.
2. In the second form, the rise is multi-peak intensive.
Key points of the picture: the stock price began to attack after the low peak was dense, and it oscillated to form one or more dense peaks during the pull-up. Although the original dense peak was reduced when the new base peak was formed, it still exists. The shock finishing on the way up belongs to the nature of washing dishes. Every intensive peak will become a strong support for the stock callback.
3, the third form, fell below the high unimodal density-the decline began.
Key points of the picture: the stock price has risen greatly, and the original low single peak has been eliminated, forming a high single peak density, which is not suitable for intervention here.