As the trend changes, the chip distribution will also show different shapes, from divergent to dense or from dense to divergent. Through case analysis, taking the upward trend as an example, we will specifically analyze the changes in chip distribution when the upward trend initially forms.

In fact, at the end of the downward trend, the stock price reached a new low and the trading volume was extremely low. At this time, although the high-level chips were deeply locked up, they did not exit the market and became a huge resistance to the later rise.

Afterwards, stimulated by various good news, the stock price broke upwards above the downward trend line or the 60-day moving average, and an upward trend has initially formed. At this time, the chips trapped at the high level will be sold with the trend, and the stock price will correct accordingly, but it will be supported by the downward trend line or the 60-day moving average (which has turned into a support line) and rise again.

In the process of stock price correction, chips formed intensive peaks at low levels. The transfer of high-level chips has greatly reduced the support from above, and the upward trend has been completely formed. For example: from October to December 2008, Dongfang Jinyu (600086) reversed from a downward trend to an upward trend. On November 26, the stock price broke through the 60-day moving average, indicating that an upward trend was initially formed; 12 On March 16, the stock price rebounded and then rose again after being supported by the 60-day moving average, indicating that the upward trend was completely formed.

On November 7, the stock price hit a new low in the downward trend, and the trading volume was also extremely sluggish. At this time, investors can see from the chip distribution chart that a large number of chips are still distributed at the high level, forming a relatively high intensive peak, indicating that the upper resistance is still strong.

On December 16, the upward trend was completely formed. At this time, it can be seen from the chip distribution chart that the original high-level chips have moved to near the 60-day moving average, and a low-level intensive peak of chips was formed near this point. , indicating that an upward trend is about to start.