I just realized that the law of supply and demand remains the most fundamental principle for understanding the movement of all asset prices, whether it's stocks, oil, gold, or even digital assets. Amid the ongoing global situations, various events continue to impact trading demand.

In fact, the law of supply and demand isn't as complicated as it seems. It’s the clash between buyers and sellers. When more people want to buy than sell, the price will rise. Conversely, when more people want to sell than buy, the price will fall.

What’s clear is that when prices change, they affect our trading decisions. Lower prices leave us with more money, allowing us to buy more. When prices rise, we slow down our purchases. This is a natural income effect. There’s also a substitution effect, which compares the price to similar products.

But what’s more complex is that in financial markets, many factors influence changes in supply and demand, such as interest rate policies, macroeconomic conditions, investor confidence, and even unexpected news. For example, recent events in Iran, where the Strait of Hormuz was closed, caused about 20% of the world's oil to disappear from the market. This was a severe supply reduction, while energy demand remained, causing oil prices to spike rapidly.

In trading, we can apply this principle through both fundamental and technical approaches. In technical analysis, traders often look for green candlesticks to indicate strong buying pressure, and red candlesticks to show powerful selling. They also analyze price trends—if prices keep making new highs, it indicates strong demand; if not, demand may be weakening.

A popular Demand Supply Zone technique is to look for moments when prices start to lose balance, with rapid upward or downward movements, then form a base before a breakout. If it’s a reversal to an uptrend (DBR), prices will drop first, form a base, then break upward. For a reversal to a downtrend (RBD), the process is the opposite.

The key is understanding that the law of supply and demand isn’t just theory. It’s a mechanism that drives real prices. Every time prices change, think about what’s happening on the demand or supply side. Understanding what’s occurring allows you to predict price directions more accurately. That’s why professional traders always emphasize analyzing supply and demand.