Regarding the recent popularity of trading based on liquidity distribution to assess chip concentration, it’s an old wine in a new bottle, and if it’s going to fail, it will fail.
The most original reflection of chip distribution is the sparsity of candlestick patterns; later, various indicators were developed to refine this, such as moving averages, trading volume, etc., with the aim of making market observation more intuitive.
As for how magical this indicator is, it may largely stem from curiosity about the unknown;
And as for its assistance in trading, it might just provide a bit of psychological comfort.
Relying solely on it for trading is futile, as it would be akin to absolute nakedness.
After all, resistance is meant to be broken upwards, and support is meant to be broken downwards.