Since the past era, I have seen that the concept of supply and demand is the most fundamental basis for understanding price movements, whether it's stocks, gold, oil, or even digital assets.

But actually, what is demand really, and how does it relate to our investments? I myself was initially confused until I understood that it's simpler than I thought.

The desire to buy and the desire to sell—that's what drives everything. When more people want to buy, the price goes up. When more people want to sell, the price goes down. Demand is the desire to buy, and supply is the desire to sell.

I noticed that when prices drop, those who see it as cheap come in to buy, causing demand to increase. Conversely, when prices rise, sellers see opportunities and offer more for sale. This is the basic rule of supply and demand.

An interesting case is the Hormuz Strait situation in March, when about 20% of the world's oil shipping routes were closed. The demand for oil remained the same, but supply suddenly decreased. The result was a rapid spike in prices. This is a perfect example of supply and demand.

In financial markets, demand is the investors' desire to invest, which may stem from confidence in the economy, low interest rates, or even good news from companies. When demand increases, prices tend to rise accordingly.

For trading, I see that using Demand Supply Zones is very useful, especially when looking for entry and exit points. When prices drop sharply (excess supply) and then start to stabilize, that’s a strong signal that buying interest is returning. Conversely, when prices rise and then slow down, that indicates selling pressure is coming in.

Green candlesticks show buying strength, red candlesticks show selling strength. But when you see doji (where open and close prices are close), that’s a sign that both sides are still balanced, and no one has won yet.

Understanding demand is about understanding market psychology. When you know that more people want to buy or sell, you can more accurately predict the direction of prices.

I think learning about this isn’t difficult if you are serious about studying and testing with real data. Start by observing candlesticks and price trends, and gradually you will see the bigger picture more clearly.