Summer Camp: Position Cost Distribution
Position cost distribution is one of my favourite features in the Moomoo app. In fact, it was the first feature I posted about in the Moo community!
https://www.moomoo.com/en-sg/community/feed/105987685023750?lang_code=2
https://www.moomoo.com/en-sg/community/feed/105987685023750?lang_code=2
How I Use It:
I use position cost distribution to check the average price of a stock, the support and resistance levels and the distribution of shares that are already profiting.
In general, the share price is more likely to
1) rebound if the suppport level holds,
2) dip when it hits the resistance level,
3) make a new low if the support level breaks,
4) hit a new high if it breaks out of the resistance level.
If many shares are already in the profitable zone, these shareholders may decide to take profit so there is a higher chance the price may fall. Conversely, if many shareholders are in the non-profitable zone, they are less likely to sell at a loss so the price may rebound.
With all this information at my fingertips, I can assess whether the current market price is suitable to enter and the risk-reward ratio.
If you like this article, I would appreciate it if you can click on the 👍 below.
Disclaimer: The above information is just sharing of my non-expert knowledge and should not be taken as financial advice. Please do your due diligence and consult your financial advisor before making any investment decision.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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101602895 : Hi all.. I'm new here..
Dadacai OP 101602895 : Welcome.
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