Yesterday, looking at the oil chart, I thought about past events.

The volatile markets are not caused by anything complicated; the answer lies in the fundamentals—supply is the main factor driving prices,
both the supply of actual goods and the supply of stocks in the market.

It's like a simple game: if everyone wants to buy but there's little supply, prices will go up.
If there's plenty of supply but no one wants to buy, prices will fall.
What happens in the financial markets is the same.

Most traders overlook this aspect, so they lack accurate price prediction.
Supply is the system that controls everything—from selling demand, production costs, the number of competitors,
to tax policies.

A clear example is oil three years ago, when the Hormuz Strait was closed.
About 20% of the world's crude oil supply passing through that point disappeared.
Meanwhile, demand remained the same.
The result was a rapid price spike—this is called a Supply Shock.

Once you understand this, reading stock charts becomes easier.
If stock prices fall, it could be due to heavy selling (increased supply) or negative news causing buyers to hold back (decreased demand).
Conversely, if prices rise, it might be because there are many buyers or positive news discouraging sellers from offering.

In financial markets, demand is influenced by interest rates, economic growth, liquidity, and investor confidence.
Supply comes from corporate decisions (raising capital, share buybacks) or IPOs of new companies.

A popular technique is the Demand Supply Zone, used to analyze price trends and identify points where the price is out of balance.
When a Supply Shock occurs, prices tend to surge or plummet sharply, then pause to form a base.
When new factors come in, prices break through the range and continue in the same direction.

There are two common trading styles: reversal trading, such as when prices fall to a buy zone (DBR) or rise to a sell zone (RBD),
and trend-following (continuation), such as when prices rise and pause but continue upward (RBR), or fall and pause but continue downward (DBD).

Supply is something traders need to understand deeply.
Looking at charts alone isn't enough; you must see the imbalance between demand and supply.
Those points where prices lose balance are opportunities for trading.

Once you understand this, try looking at real prices in the stock market or other platforms to get a clearer picture.
The theory isn't as hard as applying it in real trading.