Practical Analysis of Chip Distribution 1 Practical Skills

Analysis of the practical map of chip distribution theory:

On the right is the distribution of chips for this stock as of December 7, 2004. Please note the changes in the position of chips in Figure 3-23. The movement of chips from a low price to a high price indicates that those who bought at a low price have sold at a high price. If there are too many sellers, it is not the individual investors, but the main players. Buying low and selling high is the main way for the main force to make money, and the main force controls the rise and fall of stock prices through their own capital and information advantages. Buying low and selling high is naturally much smarter than retail investors.

How to determine the main shipment in Figure 3-22

Continuing from the above chart, this is the distribution of chips on December 29, 2004. It can be seen that as the stock price rises, the position of chips has undergone significant changes. Due to the excessive overlap of chips at low prices, it seems that the chips at low prices have not changed much until now. However, where did the chips at high prices come from? High position chips can only be sold by holders of low position chips, and the selling behavior of low position chips is sometimes deliberately done by the main force. Retail investors cannot have so many chips and cannot sell like this. Therefore, there is only one explanation, which is the main force's selling behavior!