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Join mooSchool Summer Camp S5 - Position Cost Distribution

Yooooo mooers,

Welcome back to mooSchool summer camp!
As the course in our mooSchool Summer Camp progresses, some more professional analysis tools began to be introduced like Stock Screener, Option Unusual Activity, and Position Cost Distribution, etc...

For some newbees, it might be not as easy to understand as at the beginning, but that's the way we grow in trading. If you find something you don't understand, that's a good thing. Your knowledge is increasing, to a certain extent, your investment risk is reduced, isn't it?



Come on! Let's do it!
Today we are going to talk about Position Cost Distribution!

What is Position Cost Distribution?
It's the distribution of tradable stock position costs, which shows the number of shares held by investors at different price points.

Why Position Cost Distribution matters?
Positions cost distribution assumes all free float shares were purchased and held by investors. And based on this assumption, the positions cost distribution analyzes the cost prices at which those shares were purchased, how these different price points are distributed at one time and changed daily.

Where to view Position Cost Distribution on moomoo?
Path 1: Single Stock > Detailed Quotes > K-Line chart > Landscape mode
Join mooSchool Summer Camp S5 - Position Cost Distribution
Join mooSchool Summer Camp S5 - Position Cost Distribution
Path 2: Single Stock > Detailed Quotes > Position Cost Distribution
Join mooSchool Summer Camp S5 - Position Cost Distribution
Join mooSchool Summer Camp S5 - Position Cost Distribution
How to interpret the information?
If your mobile phone setting follows the software's setting which is "Red Up / Green Down" mode, you can read the chart with the guidance below:
Join mooSchool Summer Camp S5 - Position Cost Distribution
Blue Line: Indicates the current price of the stock.
Red Lines: Profitable chip area, indicating the chip position cost lower than current price.
Green Lines: Lost chip area, indicating chip position cost higher than current price.
Gray Line: Average cost, it does not make a loss or profit.

There are some detailed indicators available at the Data Analysis area:
Join mooSchool Summer Camp S5 - Position Cost Distribution
Profit ratio: the proportion of profitable chips.
Average cost: average price of all chips.
Pressure: the average price of the chips on the total profitable reel.
Support: the average price of the chips in the total set.
90% chip range: the price range of 90% of the chips.
70% chip range: the price range of 70% of the chips.
Chip interval coincidence: the higher the chip overlap in the two intervals, the more concentrated the chip cost, the higher the stock price fluctuation.

In addition, people also like to get some ideas from the shape of the graph:
a) Low intensive: As the stock price falls, the high-cost chips gradually shift to the low level. When most of the chips are concentrated to the bottom, the stock price rise resistance decreases, and there is a chance of a rise:
Join mooSchool Summer Camp S5 - Position Cost Distribution
b) High level intensive: As the stock price rises, the chip cost gradually shifts from the low level to the high level. When most of the chips are concentrated to the top, it may indicate that the low position chips have already profited from the market, and the falling momentum is forming:
Join mooSchool Summer Camp S5 - Position Cost Distribution
c) Double peak form: Most of the stocks whose stock price is in the range of repeated shocks can be regarded as the resistance level at the high level, and the low level can be regarded as the support level. The investors need to control the rhythm “high throw and low suck”:
Join mooSchool Summer Camp S5 - Position Cost Distribution
End of class, thanks for your time!


Task & Prize:
'Quiz': Participants who answered the 'quiz question'  below correctly will be rewarded with 188 points for one session.
"Homework":
$$#Tap here to join the discussion#$$->  Tap 'Post'  on the discussion page -> share a post on your experiences of making trading decisions by using the feature of "Position Cost Distribution".
1 winner will be selected based on the post's originality and quality to get 1 FREE   $BlackBerry(BB.US)$ share.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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