In the securities market, being able to keep up with a strong main force has become the goal pursued by many investors. Therefore, many investors focus their energy on analyzing the technical indicators of their main chips, but in practical applications, it is better to refer to flexible application.

1、 Establishment of main chip distribution indicators

The main chip indicator is a price volume indicator, which represents the position of chips by using a vertical line to represent the total trading volume of the same price in a certain period. For example, in March 2000, a certain stock price sold 2 million shares at 20 yuan, and in July of the same year, it sold 3 million shares at 20 yuan. In January of this year, the stock price surged again to 20 yuan, and sold 5 million shares. Therefore, at 20 yuan, there will be a chip line of 200+300+500=10 million shares. Some software optimizes this indicator to prevent the conversion of chips, that is, when the stock price rises from a bottom to a high, low-priced chips are given a certain decrease in trading volume at the time of the rise to compensate for the conversion of main chips, in order to more accurately determine whether the main chips have fled or opened positions. 2、 Advantages and disadvantages

Advantages: Intuitive and simple. Disadvantage: Mechanical. Due to factors such as different market makers, different timing of intervention, the judgment of the main force on the overall trend, and differences in personality, there are significant differences in the price volume relationship of stock prices. Therefore, errors will inevitably occur in their application.

3、 Application of indicators

In conventional use, this indicator is used to observe the trading concentration zone of a certain stage of the stock price. Firstly, it is used to analyze support and resistance, that is, the longer the chip line, the greater the resistance or support, and the shorter the chip line, the smaller the support or resistance; The second is to observe the cost zone of the main force, that is, the sum of the time and trading volume of a stock price at a low level will be reflected on the chip line, which also indicates the cost zone of the main force's position building. Based on the distance between this zone and the price, it can be calculated whether the main force will sell. For example, Huatai Co., Ltd. (600308) has had a relatively even distribution of chips since its listing, but a longer chip line appeared at 17.40 yuan, which not only indicates the pressure at this point but also indicates that it is the main cost zone. When the stock price breaks through this line, it generally indicates that the stock has upward momentum. If it is a stock owned by a banker, it can be used to identify the potential for the banker to sell.

In practical application, as the chip line is the sum of trading volumes from different periods, if the time span is long and the stock price fluctuates up and down more times, the chip line will be virtualized. For example, in 1995, a stock sold 2 million shares at a price of 20 yuan. Since then, the price of the stock has appeared multiple times at 20 yuan, and the turnover rate has reached 300%. The 2 million shares in 1995 have been virtualized. Therefore, in application, it is best to consider the number of times the price crosses the chip line and the turnover rate within this distance for comprehensive processing; Secondly, the main force extensively uses inversion during the upward trend, which leads to errors in recording the chip line and can also easily result in erroneous judgments. When dealing with individual stocks with rising and falling volumes, it is not only necessary to analyze the distance between the cost zone and it, but also to focus on analyzing the K-line pattern in order to achieve a comprehensive approach.

In stock market operations, there are many similarities between stock battles and wars. It is a matter of emphasizing strategy and tactics, and sticking to fixed patterns and methods is the most dangerous.

Concept:

The four stages of the stock price trend cycle:

Stage A: The infinite cost moving average moves from bottom to level; Commonly known as the bottom building stage;

Stage B: The infinite cost moving average moves from flat to upward; Commonly known as the upward phase, it can be referred to as the rising phase;

Stage C: The infinite cost moving average goes from upward to flat; Commonly known as the head (top) stage;

Stage D: The infinite cost moving average moves from flat to downward; Commonly known as the distribution stage, it can be referred to as the decline stage;

Characteristics of corresponding chip distribution:

Stage A: Chips move from dispersion to concentration, with a decrease in divergence.

Stage B: Chips move from concentration to dispersion, with an increase in divergence.

Stage C: Chips move from dispersion to concentration, with a decrease in divergence.

Stage D: Chips move from concentration to dispersion, with an increase in divergence.

The ultimate truth in the stock market: supply exceeds demand, prices fall; demand exceeds supply, prices rise.

And supply and demand ultimately correspond to funds and chips. As for other fundamentals, news, confidence, technology, etc., they only indirectly affect or reflect the essence of the stock market. The essence of stock price movement is equal to the chip movement state behind trading volume.

The two sides of chip supply and demand: funds and chips

The meaning in the stock market is clearly different. For funds, there is a tendency to say that if there is a market trend, there will be funds. That is to say, having market conditions is the key, which is the main trend of China's stock market in the medium and long term. Chips are the medium for the game of interests in the stock market. Only by grasping the key of chips can we fundamentally grasp the price trend of stocks. Therefore, from a game perspective, chips are the core of stock market games.

The chip theory is actually a restoration: all factors that affect supply and demand in the stock market are reduced to chips, as well as the power, interests, competition, control concentration, dispersion, transfer, and so on reflected behind the chips. So I believe that the core of stock market research should be market costs! In a bear market, cash is dominant, while in a bull market, chips are king. Stock profits are nothing more than the process of converting cash at a low level into stocks, and then exchanging stocks for cash at a high level. From another perspective, this is the movement of chips. Mainstream funds are the movers of chips, and the cost of chips is the key. Cost analysis will become a very important branch of technical analysis.

Main functions and purposes

1. Determine the distribution and changes of chips in the transaction intensive area.

2. Identify important resistance and support levels in the development of the market.

3. Develop corresponding operational strategies by analyzing market changes.

Chips are the core of stock games, and in a bull market, chips are king. Whoever holds more chips will gain the initiative in future games. When it comes to chips, research should be conducted from the following aspects

1、 The cost of chips

This is the core issue of chips. The cost of mainstream funds or the vast majority of chips in the market plays a decisive role in the trend of stocks. Here, the concept of cost moving average is introduced, which mainly reflects the average holding cost of the market.

The difference between the moving average and the cost moving average. The cost moving average takes into account the role of trading volume in its calculation and uses neural network methods to solve the problem of short-term customers repeatedly buying and selling during the calculation time, which can truly reflect the cost of the final shareholder. The 5-day, 13th day, and 34th day cost moving averages represent the average market cost of building a warehouse on the 5th, 13th, and 34th day, respectively. If the average cost of a certain day on the 13th is 10.2 yuan, it means that the average cost of people who have bought the stock since the 13th is 10.2 yuan. An infinitely long cost moving average represents the average cost of building a position for all stocks in the market.

The infinite cost average is the most important cost average. It is an important watershed for market bull and bear, just like the value curve, where stock prices always fluctuate up and down. Here, another concept is introduced, which is the power of the infinite cost moving average, also known as the profit and loss indicator.

This indicator reflects the average profit and loss of investors, and the profit and loss on May 13th are of great significance for short-term operations. Primers, especially infinite BIAS, play a decisive role in medium - and long-term judgments. This indicator occupies an important position in investment plans and ideas, for example. What is oversold? Why did you fall down? Why do some stocks fall continuously for 7.8 consecutive limit downs but still fail to oversold? The profit and loss indicators have effectively addressed these issues.

2、 The form of chip distribution: dense and dispersed

The movement of chip distribution: concentration and divergence

The area with dense transactions forms a chip peak, while the area between the two peaks forms a valley, which is the visual form of chip distribution. The movement of chips is accompanied by the concentration and divergence of chips. It will inevitably form a peak with dense chips. Dense is divided into high-level dense and low-level dense.

Any round of market trend will experience a turnover from low to high, and then from high to low. The movement of chips is the process of realizing profits. (Of course, it is also a process of cutting meat and losing money)

Low level full turnover is a sign of completing the fundraising stage, while high-level full turnover is a sign of completing the distribution stage.

Cost intensive is the preparation process for the next stage of the market, while cost divergence is the unfolding process of the market.

3、 Concentration degree

The magnitude of the main area where the main chips are accumulated indicates that the larger the value, the greater the concentration of chips, and the more scattered the chips are. It should be noted that this concentration does not mean that the banker controls the market, and is completely different from the data on the Dragon and Tiger List.

At present, it is not possible to formulate a plan for it, and the following results can only be summarized through observing each stock one by one.

1. Stocks with high chip concentration (below 10) have strong explosive power and a relatively large range of upward or downward movements.

2. Stocks with low chip concentration (especially those above 20) have significantly weakened in their upward momentum.

The concentration process of chips is the preparation process for the next stage of the market, while the divergence process is the unfolding process of the market.

It should be emphasized that:

1. It is not only concentration that causes stocks to rise.

2. Achieve concentration and increase the magnitude of the rise.

3. Non concentrated stocks can also rise.

4、 Active chips

The distribution of chips allows us to see the distribution of other people's holding costs, which is an effective tool for us to conduct cost analysis. When we carefully observe the changes in the distribution of chips, we find that chips near the stock price are the most unstable and easiest to participate in trading, because stockholders near the stock price are the least able to resist temptation and those who are profitable want to quickly convert floating profits into actual profits; Those who are trapped want to sell their stocks quickly while the losses are still low, and use the funds to buy other stocks to quickly recoup the losses. And far away from the stock price, the chips below will increase their confidence in holding shares due to a certain profit; The chips above are the most active near the stock price due to being too deeply trapped and unwilling to cut flesh, while the chips far away from the stock price are less active.

Active chips reflect the percentage of chips near the stock price to all circulating chips. Its value range is from 0 to 100, with larger values indicating more active chips near the stock price, and smaller values indicating fewer active chips near the stock price.

The number of active chips can also be used to describe the density of chips. For example, if the value of active chips today is 50, it indicates that chips near the stock price are in a dense state. If the value of active chips today is 10, it means that there are very few chips near the stock price, and most chips are far away from the stock price, making a lot of profits or losses.

A situation where the value of active chips is very low is worth noting. For example, after a long period of decline in a stock, the value of active chips is very small (less than 10), and most chips are in a deeply trapped state. At this point, most shareholders are unwilling to cut out, so it can often become a good buying point; For example, if a stock has risen for a period of time and the active chips are very small (less than 10), most of the chips are in a profitable state. If the strength of the market control is high (greater than 20) at this time, and there are obvious characteristics of the stock market in the early stage, the overall increase is not too large, and it can also become a good buying point. So, when the stock price reaches different stages of operation, considering the amount of active chips can have a good auxiliary effect.

5、 Speculation strategy

Short term funds or small cap funds (within 3 months, up to 20 million yuan) are mainly based on the plan, while the speculative strategies of medium-term funds and large cap funds will change.