I just realized that the demand and supply mechanism remains the main driver of asset prices across all markets, from stocks to energy, gold, and even digital assets. But the problem is that many people misunderstand it.

Let's clarify: what we call Demand Supply in Thai is "the desire to buy and the desire to sell," which isn't as complicated as many think.

Simply put, demand is the buying pressure—people want to purchase assets at various prices. When prices drop, more people want to buy. When prices rise, the desire to buy decreases. Supply is the selling pressure—sellers want to offer assets for sale. When prices are high, sellers are more willing to sell. When prices are low, they don't want to sell as much.

What's interesting is that the actual market price occurs at the equilibrium point—where buying and selling pressures meet. At that point, the price tends to stay stable because if it deviates, forces will push it back.

A recent example is the Strait of Hormuz. When oil shipping routes were blocked, the supply of crude oil suddenly dropped by over 20% globally, while energy demand remained the same. The result was a rapid spike in oil prices due to shortages.

In financial markets, things are a bit more complex because Demand Supply isn't only dependent on the stock price itself. It depends on the actual demand to acquire that asset, which is influenced by many factors, such as earnings forecasts, economic growth, or even investor confidence.

When good news comes out, buyers are willing to pay higher prices or buy in larger quantities. Meanwhile, sellers may hold back from selling. Prices go up. Conversely, when bad news appears, buyers hold back, and sellers want to lower prices, causing prices to fall.

From a trading perspective, Demand Supply Zones are quite useful. The basic idea is to identify points where the price is out of balance and wait for it to return to equilibrium. When the price drops sharply (Drop) and then stabilizes (Base), it tends to rally back up (Rally). Conversely, when the price rises sharply (Rally) and then stabilizes (Base), it often reverses downward (Drop).

Candlestick analysis is another method that clearly shows buying and selling pressures. A green candle (close higher than open) indicates buying dominance. A red candle (close lower than open) indicates selling dominance. Doji candles (close near open) show a standoff between buyers and sellers.

In reality, understanding demand and supply isn't very difficult; it just requires practice and careful observation of real price movements to see the bigger picture. If we can predict how buying and selling pressures will shift, we can better estimate where prices should go.

For those interested, applying this concept with tools like Gate's analysis features can be quite effective. When used properly, it can make tracking trends and timing trades much easier.