In the chip distribution map, the low-level concentration is often presented in the form of a low-level concentration peak, which indicates that with the continuous decline of the stock price, the chips with the high-level quilt in the previous period finally failed to dry up, and began to rebound in the downward trend or "cut the meat" out of the low position, which made the chips shift from the high position to the low position on a large scale, forming a low-level concentration state of chips. When most of the locked chips are transferred from the high position to the low position, the resistance at the top is greatly weakened, while the kinetic energy at the bottom is gradually enhanced, and there is a great possibility that the stock price will rise next.

1. analyzing the distribution of chip cost is an important means to judge the dealer's trading intention, expand his trading profit level and prevent the risk of stock price fluctuation in advance. We try our best to approach and simulate the actual chip distribution in the market through a mathematical model. Although we can't know everyone's cards, we can know most other people's cards.

Many stock analysis software (such as Tong Daxin) provide customers with two COST functions, Cost and WINNER, which provide a free and open platform for the analysis of chip cost distribution.

2. COST and WINNER functions

1.COST and WINNER are opposite functions. COST estimates the price according to the profit-making disk, and WINNER estimates the profit-making disk according to the price. Flexible application of these two functions can quantitatively analyze and calculate the cost.

2. COST(N): cost distribution

meaning: calculate the cost distribution. It indicates the price of N% chips (which can be regarded as a profit-taking disk) on that day, that is, there are N% chips below this price and the remaining (1-N)% chips above this price. The reason for this calculation is to obtain a more clear market cost composition through specific numerical analysis.

3. if we use COST(5) to represent the average cost, then COST(95)- COST(5)/COST(5) means that 9% of the cost is distributed in a certain range near the average cost, which describes the density of the cost distribution, and we call it chip concentration.