Dear trading friends, today I want to reveal a trading artifact used by professional institutions — the chip distribution chart. This seemingly simple chart is actually an X-ray machine that reveals market sentiment and main force trends. Let’s use this tool to see the true competitive landscape of the market.
The essence of the chip distribution chart is the perfect combination of historical trading volume and price position. The horizontal axis represents price, while the vertical axis clearly displays the trading activity of each price level. The blue columns indicate areas where buyers are actively involved, while the orange marks the battlefield of concentrated selling.
Taking the daily level of Bitcoin (BTC) as an example, the current market has formed a clear chip dense area in the $103,300~$105,500 range. This means that a large amount of trading has taken place in this price range over the past period, akin to a battlefield where both sides are in a standoff. Such areas often have dual properties: they are both support and resistance, and once broken, they will trigger accelerated market movements.
Above: "Main force accumulation / Retail investor trapped dense area"
Above: "Price vacuum acceleration zone"
More importantly, pay attention to the "vacuum zone" below $103,300.
The sparsity of chips in this area is like a smooth section of a highway, where the price almost encounters no resistance when crossing. Recall the iconic bullish candlestick on May 8.
BTC broke through the $100,000 mark thanks to this vacuum environment. However, the current MACD indicator shows a decrease in momentum, reminding us to be cautious of possible pullback risks.
When the price approaches the key chip area, smart traders will activate defensive strategies. Our all-coin DCA tool acts like an untiring tactical commander, automatically executing the "buy more as it falls" battle plan. Unlike traditional one-time bottom fishing, this strategy will automatically increase positions every time the price drops by 1.5%, effectively averaging down the cost.
It is particularly worth mentioning that this intelligent system supports multiple trigger conditions:
Price trigger: Waiting for the best entry point like a precision-guided missile.
RSI/TD indicator trigger: Using technical indicators to filter out false signals.
Fully automated mode: Suitable for novice users who do not want complicated settings.
Log in to the AiCoin APP now, and you will find this trading tool in the "Strategy Square". Remember, when the price enters the lower chip dense area, it is the best time to start DCA. The market always rewards those traders who make good use of tools, and the chip distribution chart is like a night vision device that helps you see through the battlefield fog.
In this era of information overload, the real trading advantage lies not in knowing more, but in understanding how to interpret market language better. Next time when you open the candlestick chart, take an extra three seconds to look at the chip distribution — perhaps that brief three seconds could help you avoid traps and seize the next accelerating market.
By the way, all the teaching content above will appear in the AiCoin PC live room every Monday and Thursday. Everyone, let's go for it!
