I just noticed that many people are still confused about the basic concepts in the market. Actually, it’s not that hard. All you need is to understand what supply is and how it connects to buying demand, and you’ll be able to see price movements more clearly.

Let’s start with the basics. The market works because there are always two sides: the people who want to buy and the people who want to sell. Once you understand this, you’ll start to see why prices go up and down the way you’ve seen.

Buying demand (Demand) is the number of people who want to come in and buy assets at different prices. When the price goes down, people want to buy more. When the price goes up, people buy less. That’s simply natural human behavior—but there are other factors too, such as investors’ confidence, news and information, or even the expanding global economy.

So, what is supply? It’s the amount of assets that sellers are ready to offer at different prices. When the price rises, sellers are happier to sell. When the price falls, sellers are less willing to sell. These two sides are constantly clashing.

Now let’s look at a real example. Last March, the situation in the Middle East led to the closure of the Strait of Hormuz. Around 20% of the world’s crude oil that flows through that point disappeared immediately. At that time, the supply of oil dropped sharply, but the demand for energy remained. See? Prices skyrocketed like crazy. This is a supply shock.

This is an advantage for investors who understand the principle here, because they know where to find opportunities. When prices are out of balance, smart people step in.

When it comes to trading, one technical approach I like to use is the Demand Supply Zone. When price is moving sharply up or down, it shows that one side has too much strength. When price starts to slow down and trade within a range, you know a base is being formed. When new news or new factors come in, the stronger side returns and wins, and the price breaks out of the range—that’s the timing to enter.

Price movement always depends on the balance between these two sides, whether it’s stocks, investment products, or digital assets. The same principle applies. Once you understand what supply is and how it relates to buying demand, you can read the market better.

For myself, I think studying this isn’t as difficult as you might think. You just need to sit and watch real prices often, and then try to apply what you see. Instead of reading theories and forgetting them, go to Gate and check different assets—watch what’s happening—so you can see the real picture more clearly.