Stock investment is an operation that can earn high returns. High returns naturally come with high risks. Investors can choose to invest in stocks if they can resist high risks. In the stock market, the shape of each stock is slightly different, and investors must analyze it carefully to avoid losses.

What are the forms of chip distribution?

1 The unimodal dense form in the chip distribution chart. Unimodal dense refers to the unimodal shape of the chip distribution. The chips above the single-peak density will continue to be washed out when the stock price fluctuates and adjusts. On the contrary, the chips under the intensive single peak will continue to decrease with the profit taking.

2 The bimodal dense form in the chip distribution chart, bimodal dense refers to the bimodal shape of the chip distribution. It consists of two very significant dense peaks, which play a strong support or resistance role in the rise and fall of stock prices. Normally, after forming a dense double-peak pattern, the stock price will gradually fill the chip area between the two dense peaks during the fluctuation process.

3 Multimodal dense form in the chip distribution chart. Multimodal dense refers to the multimodal shape of the chip distribution. Those distributed at the top are upper dense peaks, those at the bottom are lower dense peaks, and those in the middle are medium dense peaks. Investors can divide the stock into multiple peaks and multiple peaks according to the different trends of the stock.

The above three forms are common situations in chip distribution, and investors must learn to deal with them after entering the market. Usually the average price in the intensive peak area is the holding cost of the main force. As the main force continues to distribute chips at high levels, the cost range will diverge. It has to be said that the upper intensive peak will generally serve as a resistance position for the stock price, while the lower intensive peak will generally act as a support for the stock price.

In general, different forms of chip distribution have different meanings, and investors need to learn to deal with and think about them. Among them, the double-peak intensive form gradually evolves into a single-peak intensive form as chips continue to change hands. At the same time, in two or more price areas, the distribution of chips will form the same number of intensive peaks, which investors need to pay attention to.