Chip theory is an intersting TA for trading. The profit and loss (pnl) ratio represents the ratio of profit-making or loss-making orders in the current market. The larger the profit ratio, the more investors are in a profitable state. Stock chip analysis is a kind of stock technical analysis. Investors can analyze it in combination with other indicators and data.
Function
This is a chip distribution and trend indicator I developed that consists of three different colored histograms. Yellow represents the percentage of floating chips, green represents the percentage of hold-ups, and red represents the percentage of profit. Among them, the more red columns, the more profitable chips, the more green columns, the more trapped chips. At the same time, I used three colored moving averages to represent the trends of these three types of chips for reference. At the same time, a table will appear in the middle of the indicator, indicating the chip ratio value of the latest bar in the form of a percentage.
Key Signal
profit chip percentage and trend--> red color floating chip percentage and trend --> yellow color loss chip percentage and trend --> green color
Remarks
This is a Level 3 free and closed source indicator.