Actually, demand and supply are the most fundamental principles behind price movements in the market. Whether it's stocks, oil, gold, or even digital assets, everything depends on these forces. But what exactly is demand, and how can we use it in trading? We need to understand it deeply.

Whenever stock prices rise, it indicates strong buying pressure (demand). Conversely, if prices plummet, it shows that selling pressure (supply) dominates. It's that simple. But many factors can cause demand to change, such as news about earnings reports, economic forecasts, or even political situations.

Let's look at a real example. During tense situations in Iran, oil prices surged rapidly because supply disappeared from the market, but demand remained. This caused prices to explode. This is what is called a supply shock.

In trading, it's important to understand the demand-supply balance at any given point. If prices keep making new highs, demand is still strong. Conversely, if prices keep making new lows, supply still has strength.

A popular technique is using Demand and Supply Zones, which identify moments when the market starts to lose balance. When prices move sharply up or down and then pause within a range, it signals that demand and supply are colliding.

Looking at candlesticks, a green candle (closing higher than opening) indicates demand winning during that period. A red candle (closing lower than opening) shows supply winning. If it's a doji (opening and closing at the same level), it signals that both sides have equal strength.

Trading with Demand and Supply Zones can be done in two ways: trading when the price reverses or trading in the continuation trend.

A reversal (DBR) occurs when prices drop sharply and then form a base. When buying pressure returns strongly, prices break out upward, and traders can enter positions at this point.

A reversal downward (RBD) is different: prices rise sharply, then form a base, and when selling pressure returns, prices break out downward.

More commonly, traders follow the trend—when prices move in one direction, pause briefly, then continue in the same direction. This is called RBR (uptrend continuation) or DBD (downtrend continuation).

To deeply understand demand and supply, you need to practice with real market prices. Observe various assets on Gate and notice which force is winning. The more you practice, the clearer the picture becomes, and your trading decisions will become more accurate over time.