I just noticed that many people still overlook the fundamental principle that actually controls everything in the market, from stocks, oil, gold, to digital assets. That is supply and demand. Amid these geopolitical tensions, the same principle still operates behind the scenes.

Demand is the desire to buy, supply is the desire to sell, and the rule of demand is that when prices decrease, buyers tend to want to buy more. When prices increase, buyers tend to stop buying. It sounds simple, but this is the core of everything happening in the market.

Many factors influence demand, such as buyers' income, expectations about future prices, consumer preferences, even seasons and news. Sometimes unexpected events occur, like tensions in the Middle East, causing oil demand to spike suddenly because transportation routes are closed. This is a clear example of demand driven by external factors.

On the supply side, it works in the opposite way. The rule of demand states that when prices rise, sellers want to sell more. When prices fall, they reduce the amount offered. Factors affecting supply include production costs, technology, tax policies, and even weather conditions. For example, when the Strait of Hormuz is closed, 20% of the world's oil disappears from the market. This is a supply shock that causes prices to surge.

Prices actually occur at the equilibrium point where supply and demand curves intersect. At this point, price and quantity tend to stabilize because if prices rise above this point, sellers want to sell more, but buyers buy less, leading to inventory buildup and downward pressure on prices. Conversely, if prices fall, buyers want to buy more, but sellers are reluctant to sell, causing shortages and prices to rise again.

For investors, this principle is very helpful in fundamental analysis. When stock prices fall, it often indicates that supply (selling pressure) is strong. Conversely, when prices rise, it shows that demand (buying pressure) is winning. But deeper down, the rule of demand is not about the stock itself but about the demand for that company's activity. So, when good news comes out, demand for the company increases, buyers are willing to pay higher prices, and sellers hold back, pushing prices up.

In technical analysis, we use various tools to observe buying and selling pressures. Green candlesticks indicate demand winning during that period, red candlesticks show supply dominance. Recognizing trends also helps; when prices make new highs, demand remains strong; when they make new lows, supply still has strength.

Support and resistance are part of this. Support is where demand is waiting to buy, and investors believe the price there is reasonable. Resistance is where supply is waiting to sell, and investors see the price as high and want to sell.

The Demand Supply Zone technique is a popular method of applying this principle in trading. Sometimes, prices move rapidly (showing imbalance) and then pause within a range (Base). When new factors come in, prices continue moving. For example, when prices drop (Drop), pause (Base), then rally (Rally), it’s called a DBR or Demand Zone Rally Base Rally. Traders can enter trades at breakout points.

Continuation trends happen more often than reversals. When supply or demand imbalance occurs, prices tend to continue in the same direction until a new equilibrium is found. For example, prices rally, pause, then rally again, called RBR.

In summary, supply and demand are the fundamental mechanisms driving everything. The demand rule states that buying desire and price are inversely related. Understanding this principle helps investors analyze the market better, but it requires real-world testing and studying asset price movements to gain a clear picture.