Since when did I start studying the market? I realized that the laws of supply and demand are tools that can explain everything—whether it's stock prices, oil prices, or even digital assets. Everything depends on buying and selling demand.

Let's start with the basics. Demand is the desire to buy. Think of it this way: when the price of a stock drops, people want to buy more. But when the price rises, the desire to buy decreases. This is what economics calls the "income effect" and the "substitution effect," which explain why we do this. When prices are low, our money is worth more. Supply is the desire to sell. Sellers want to sell more when prices are high, but don't want to sell when prices are low.

The important thing is that when the demand and supply curves intersect, the price reaches equilibrium. At that point, the price tends to stay stable because both sides are in balance. If the price increases from this point, sellers are happy to sell more, but buyers will buy less, causing the price to adjust downward. If the price drops, buyers want to buy more, but sellers are reluctant to sell, causing the price to go up.

When it comes to financial markets, the laws of supply and demand still apply. But the factors influencing demand are more complex. For example, low interest rates make investors more eager to buy stocks. Investor confidence, good or bad news, and even system liquidity all affect demand. As for supply, it depends on corporate decisions like issuing new shares or share buybacks, government policies, and even companies going public.

Now, let’s look at a real example. The Hormuz Strait has been closed off. Most of the world's oil flows through here. Oil supply has dropped sharply, but energy demand remains the same. The result? Oil prices soared rapidly. This is what I call a "Supply Shock."

When analyzing stocks, the laws of supply and demand are at the core of everything. In fundamental analysis, we look at whether the demand for a company’s stock is increasing or decreasing. Good news boosts demand, making buyers willing to pay higher prices. Bad news reduces demand, causing sellers to lower their prices.

In technical analysis, the laws of supply and demand play a crucial role. We use various tools to observe buying and selling pressure. Green candlesticks indicate buyers won the day; red candlesticks show sellers won. When prices hit new highs, it indicates strong demand. When prices hit new lows, it indicates strong supply.

Support and resistance levels are also related to supply and demand laws. Support is where buyers tend to step in because they see the price as cheap enough. Resistance is where sellers come in because they see the price as high enough.

The "Demand Supply Zone" technique relies on this concept. When the price drops sharply and then consolidates to form a base before rising again, it’s called "DBR" (Drop Base Rally). When the price rises sharply and then consolidates before falling, it’s called "RBD" (Rally Base Drop). Traders use these patterns to time their entries and exits.

Similarly, "RBR" (Rally Base Rally) and "DBD" (Drop Base Drop) are continuous movements in the trend, occurring when buying or selling momentum is strong enough.

Finally, the laws of supply and demand are not difficult, but they require time to understand and practical testing. The more you observe how asset prices change and how supply and demand shift, the clearer the picture becomes. That’s why investors and traders must study these fundamental principles seriously.