Just realized that the principles of supply and demand are what drive the entire market, whether it's stocks, gold, oil, or even digital assets.

It's not as complicated as you think. Supply and demand are simply the desire to buy and the desire to sell. When these two collide, prices are formed. When more people want to buy, prices go up. When more people want to sell, prices go down. It's that simple.

The law of demand states that if the price is high, people buy less. If the price is low, people buy more. Conversely, the law of supply states that if the price is high, sellers want to sell more. If the price is low, sellers don't want to sell. It’s like a balance that the market finds through the clash of these two forces.

Want to know why prices change? Try looking at whether supply and demand are balanced. When the Iran-Israel war broke out and the Strait of Hormuz was closed, 20% of the global oil supply disappeared. But the energy demand remained the same. The result was prices kept rising because supply decreased while demand stayed constant.

In financial markets, it’s the same. When the economy grows well, people want to invest more. Asset demand increases, and prices go up. If companies buy back their shares, the supply in the market decreases, and prices tend to rise accordingly.

Applying this principle to stock trading is very serious. If you see a large green candlestick, it indicates buying pressure wins. If you see a large red candlestick, it means selling pressure wins. But if you see a doji, it means supply and demand are balanced, and prices won’t move until something new happens.

Finding support and resistance levels also uses the same principle. Support is where buyers are waiting to buy because they think the price is good enough. Resistance is where sellers are waiting to sell because they think the price is high enough. When prices break through these levels, it indicates that either demand or supply has become too strong.

The Demand Supply Zone technique is very popular. It’s used to see when prices have risen too much and are about to pause. If buying strength returns, prices will continue to rise. If selling strength returns, prices will drop sharply. Traders can enter trades at breakout points of these consolidation ranges.

The truth is, if you understand whether supply and demand are balanced or not, you can predict where prices are headed. Whether using fundamental or technical analysis, the principle is the same. Observe the actual market often, and the picture will become clearer.