I just noticed that demand and supply still remain the fundamental drivers behind the price movements in all financial markets, from stocks, gold, energy to crypto.

Often, we see stock prices or other assets go up and down without understanding why. But if you understand the principles of demand and supply better, the picture becomes much clearer. The actual forces controlling prices are the buying demand and selling supply.

Let me break it down for better understanding. Demand (อุปสงค์) is the desire to buy. When prices drop, people want to buy more because they see it as cheaper. Conversely, if prices rise, the desire to buy decreases. Supply (อุปทาน) is the willingness to sell. When prices are high, sellers want to sell more to make a profit. But if prices are low, sellers tend to hold back from selling.

The point where actual buying and selling occur is at the equilibrium point where the demand and supply curves intersect. At this point, prices and quantities tend not to change because if anyone tries to raise the price, inventory builds up and prices are pushed down. Conversely, if prices are set too low, shortages occur and prices are pulled upward.

In financial markets, this is a bit more complex. Factors affecting demand include interest rate policies, investor confidence, and liquidity in the system. Supply is influenced by corporate policies, new IPOs, and regulations.

There are clear real-world examples. For instance, last March, the Strait of Hormuz was closed due to political tensions, reducing global crude oil supply by about 20%. Meanwhile, energy demand remained steady. The result was a rapid spike in oil prices. This is a clear supply shock.

For stock trading, these principles can be applied in both fundamental and technical analysis. If a stock drops, it might indicate strong selling pressure. If it rises, buying pressure is strong. In technical analysis, we look at candlesticks: a green candle (close higher than open) shows buying dominance, while a red candle (close lower than open) indicates selling dominance.

The Demand and Supply Zone technique is very popular. It helps identify moments when the price loses balance and is searching for a new equilibrium. When prices move sharply up or down, they often pause within a range. When new factors come in, prices break out of that range and continue in the same direction. This is a good opportunity to enter trades.

Understanding demand and supply isn't as difficult as it seems. It requires practice and frequent observation of real market prices. Learning from actual price movements helps you see the bigger picture and apply the concepts more effectively.