There's an interesting topic I've noticed in the market recently. Amid global tense events, the prices of all assets continue to be driven by the same fundamental force: the problem between what people want to buy and what is available to sell. Whether it's stocks, oil, gold, or even digital assets.

This seems simple, but in reality, it's more complex than it appears. Let's take a closer look.

First, it's important to understand what demand means. In economics, demand is the desire to purchase. Its significance lies in the fact that when prices fall, people want to buy more. When prices rise, people want to buy less. This relationship is called the "law of demand," and it operates for two reasons.

First, when prices decrease, your money becomes more valuable. If a product's price drops by half, you can buy more of it. This is called the "Income Effect." Second, when the price of one product drops, it becomes more attractive compared to similar products. People then switch to buy this product instead. This is called the "Substitution Effect."

However, demand isn't solely dependent on price. Many other factors influence it, such as the buyer's income, the prices of related goods, consumer preferences, the number of buyers in the market, and future price expectations. Additionally, unpredictable factors like seasons, government policies, consumer confidence, and emergencies such as wars or crises also play a role.

The other side of the equation is supply, which is the willingness to sell. If demand is the quantity people want to buy, supply is the quantity sellers want to offer. The law of supply is the opposite of demand: when prices rise, sellers want to sell more; when prices fall, they want to sell less. The reason is clear: higher prices mean higher profits.

Factors affecting supply include production costs, the prices of alternative goods that producers can create, the number of competitors in the market, technology, and price expectations. Other factors include climate conditions, tax policies, exchange rates, and access to capital.

Recent events serve as perfect examples. In March, the Strait of Hormuz was closed due to the Middle East conflict, causing about 20% of the world's oil supply passing through this point to suddenly disappear from the market. Oil demand remained the same, but supply sharply decreased. The result was a rapid surge in prices. This is called a "Supply Shock."

A crucial concept is what is called Equilibrium or market balance. As long as we only know how much people want to buy and how much sellers want to sell, we still can't determine the price. The actual market price is where demand and supply meet.

At this point, prices tend to stabilize because if prices go above this point, sellers will want to sell more, but buyers will want to buy less, leading to excess supply that pushes prices back down. Conversely, if prices fall below this point, buyers want to buy more, but sellers want to sell less, leading to shortages and upward pressure on prices.

Understanding this principle allows us to apply it to financial markets. Stocks or other financial assets are commodities, so the same rules apply.

In fundamental analysis, stock prices rise when more people want to buy, often triggered by good news about the company, such as strong earnings, growth forecasts, or exciting new projects. Conversely, prices fall when bad news emerges.

In technical analysis, traders use various tools to observe buying and selling pressure. Candlestick charts are one method: green candles (closing price higher than opening) indicate buying strength, while red candles (closing price lower than opening) indicate selling strength.

Trend analysis is another approach: if prices make new highs consistently, buying pressure remains strong; if prices make new lows, selling pressure is dominant.

Traders also use support and resistance levels: support is a price level where buyers are waiting to buy, and resistance is where sellers are waiting to sell.

A popular technique is the Demand Supply Zone, which looks for moments when price loses balance and starts moving rapidly, then pauses, and reverses direction or continues in the same trend.

In cases where prices drop sharply (Drop) and then pause within a range (Base) before reversing upward (Rally), it's called DBR. Conversely, when prices rally (Rally) and then pause (Base) before reversing downward (Drop), it's called RBD.

Sometimes, prices don't reverse but continue in the same direction, called Continuation. In this case, prices may rally and pause (RBR) or decline and pause (DBD).

The most important point is that demand and supply are not just theoretical concepts—they are real forces that drive markets every day, whether in stocks, commodities, energy, or any other market.

For investors, understanding these principles can be the difference between profit and loss. If you can predict whether demand will increase or supply will decrease, you know prices will go up. Conversely, if you anticipate the opposite, you expect prices to fall.

Of course, forecasting isn't easy; many variables must be considered. But with a solid understanding of the fundamentals, you have valuable tools for market analysis. Try applying this to assets you're interested in, observe how it works, and learn from real market experiences.