Stock Price Variation Model Formed By Chip Supply-Demand Relationship And Its Application

With the development of Chinese securities market, Chinese securities analysistechniques are also developing by the growth and development of the stock market.Chips distribution is a technique invented by Chinese people that indicates thedistribution of cost of carry of total circulation quantity and reflects the quantitycarried by investors at different price levels at the coordinate system same with stockprice. However, chip distribution only can indicates the quantity carried by investorsamong total circulation quantity and can't distinguish between organizational investorand individual investor. That means chip distribution can't confirm the attribute ofchips.The emphasis of this paper's study is to confirm the chips attribution througheconomics of supply and demand's rule. Chip attribution belongs to organizationalinvestors when the demand price higher than supply price, otherwise chip attributionbelongs to individual investors. This paper reveals investors'supply and demand ofchips in stock market through analysis on mathematical and graphical models anddeduces the relationship between the supply-demand and the chip distribution in stockmarket. To calculate the supply price and demand price of the stock and set upoperation model in order to provide reference and supporting for investors. That isthe innovation point of this paper.1.This paper describes the types of domestic and foreign securities analysis andresearch. This article uses the technical analysis and psychological behavior analysisand portfolio analysis techniques.2.Then introduced the theory and using method of chip distribution andsummarize the usage of chip distribution indicators. And proposed the main defects ofchip distribution that is can't confirm the chip's attritions.3.In order to solve the problem of chip attribute, I summarize the economicstheory of the relationship of supply and demand through the chart model. Thereforeraises the important research direction; we can confirm the chip attribute through theconfirmation of supply price and demand price as long as we confirm the stock'ssupply price and demand price. 4. Summarizes the differences between stock market and economic market inrespect of supply-demand relationship, discloses the supply and demand oftransactions in stock market with chip transfer rules.5.According to the results of previous research results by the four majorbehavioral finance to develop three fixed operating mode which is timing selection,stock selection and trading.6.Application of the three fixed operating model to carry out case analysis by theexamples of Shanghai Composite Index and individual stock.7. Finally, summarize the attentions for practical application of the earningoperating model are concluded and summarize the whole paper to bring up theinnovation point and further researching direction.