Position cost distribution can help us understand our relati...
Position cost distribution can help us understand our relative position and the future trend of stocks, serving as indicators for entry or profit-taking:
When positions are concentrated at the lower end, most investors have not yet realized their profits, resulting in less upward pressure on stock prices.
When positions are concentrated at the higher end, most investors have realized their profits, resulting in greater upward pressure on stock prices and a higher likelihood of a trend reversal. It is advisable to be cautious at this level.
When positions are concentrated at both the high and low ends, it is important to pay attention to the distribution at the lower end to prevent a large number of bottom positions from profit-taking and causing downward volatility in stock prices.
When positions are concentrated at the lower end, most investors have not yet realized their profits, resulting in less upward pressure on stock prices.
When positions are concentrated at the higher end, most investors have realized their profits, resulting in greater upward pressure on stock prices and a higher likelihood of a trend reversal. It is advisable to be cautious at this level.
When positions are concentrated at both the high and low ends, it is important to pay attention to the distribution at the lower end to prevent a large number of bottom positions from profit-taking and causing downward volatility in stock prices.
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