I just realized that many people still don't truly understand why stock prices or various assets keep changing all the time. Sometimes we think it's very complicated, but actually, the law of supply and demand is at the heart of everything in the market.

If you think about it simply, it's about buying and selling. When more people want to buy, the price goes up. When more people want to sell, the price goes down. Whether it's stocks, energy, gold, or even digital assets, all are driven by this force.

But what's interesting is that the law of supply and demand isn't that simple. There are many factors affecting demand, such as people's income, preferences, future price expectations, and unexpected events. For example, a war can suddenly spike oil demand because transportation routes are shut down, creating a huge demand surge.

Supply, too, isn't solely dependent on price. Production costs, technology, tax policies, natural disasters—all these factors have impacts. Imagine the case where the Strait of Hormuz is closed, causing 20% of the world's oil to disappear from the market instantly. That's a true supply shock.

When supply decreases but demand remains, prices rise rapidly because of shortages. This is the equilibrium point—the point where the demand curve intersects with the supply curve.

Importantly, the law of supply and demand isn't just an economic theory sitting in textbooks. It's a practical tool that investors can use to analyze markets.

Regarding fundamental analysis, rising stock prices indicate strong demand; falling prices indicate strong supply. Factors affecting earnings forecasts or company value cause shifts in demand and supply. Good news leads to more buyers and fewer sellers, pushing prices up. Bad news causes buyers to hold back and sellers to increase, pushing prices down.

For technical analysis, various tools are used to observe buying and selling pressure—like candlestick charts: green indicates buying strength, red indicates selling strength. Trend analysis shows that if new highs are made repeatedly, demand remains strong; if new lows are made repeatedly, supply is dominant.

Support and resistance levels are also applications of the law of supply and demand. Support is where buyers are waiting to buy; resistance is where sellers are waiting to sell.

A popular technique is called the Demand Supply Zone, which looks for moments when the price loses balance—rising or falling sharply—and then consolidates within a range. When new factors come in, the price breaks out of this range and continues in the same direction. Traders can enter at breakout points.

Sometimes, prices rise and then pause before rising again, or fall and then pause before falling further. This is a continuous movement following the trend.

In summary, the law of supply and demand isn't difficult if you see it just as buying and selling. But if you want to use it seriously, you need to study and apply it to real prices—observe how it works, why prices change. The more you study, the clearer the picture becomes.