Demystifying the Chip Indicator The Invisible Code in the Stock Market, Have You Understood It?

Mondo Culture Updated on 2024-01-29

Chips, a seemingly mysterious word, play an important role in **. It is not only a simple technical indicator, but also a kind of information, a language, through which it can gain insight into the traces of the main force and predict the best risks and opportunities. But do you really know how to decipher the chip indicator?Today, let's unveil its mystery together.

The chip indicator, also known as the chip distribution, is to judge the flow and intention of the main funds by analyzing the cost of holding the **. To put it simply, it can help us understand which price points are concentrated and which price points are scattered, so as to judge the support and pressure levels.

First of all, learn to look at the concentration of chips. The area with high concentration means that the chips are highly concentrated in the ** range, which usually means that there is greater support or pressure in the ** range. If the stock price runs above the ** range and the concentration is high, then once the stock price ** reaches the range, it is likely to be strongly supported;Conversely, if the stock price is running below the ** range and the concentration is high, then once the stock price ** reaches the range, it is likely to be under strong pressure.

Second, pay attention to the direction in which your chips are moving. The direction in which the chips are moving can reflect the flow of the main bankroll. If the chips move from high to low, it usually means that the main capital is flowing out and the stock price may **;;Conversely, if the chips move from low to high, it usually means that the main capital is flowing in, and the stock price may **.

Also, pay attention to the distribution pattern of your chips. Different distribution patterns represent different market implications. For example, the "Unimodal Intensive" pattern indicates that chips are highly concentrated in a narrow range, which usually means that the stock price has strong support or pressure within that rangeThe "Bimodal Intensive" pattern indicates that the chips are distributed in two different ranges, which usually means that the stock price fluctuates between the two ranges, and the direction of the stock price needs to be judged according to the specific situation.

Finally, it is necessary to combine other technical indicators and market environment to make a comprehensive judgment. Chip indicators, while important, cannot be used on their own. In practice, it is also necessary to combine other technical indicators such as MACD, KDJ, etc., as well as the market environment such as policies, news, etc., to comprehensively judge the trend of **.

In short, the chip indicator is an important tool in the market, through which it can gain insight into the traces of the main force and predict the risks and opportunities of the market. However, in order to truly grasp the essence of the chip indicator, it is necessary to continue to learn Xi and practice. Hope this article can be enlightening and helpful to you!

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