Why do asset prices go up and down? Actually, it's not as complicated as you think because everything boils down to a single fundamental principle: the imbalance between buyers and sellers.

Last month, the Hormuz Strait was closed, causing more than 20% of the world's crude oil to disappear from the market. Oil prices immediately surged. Why? Because supply contracted sharply while energy demand (the demand side) remained the same. This situation is called a Supply Shock.

This is the core of the matter: prices are not set by numbers or formulas but are driven by the pull between two parties. One side wants to buy, the other wants to sell. When both sides find equilibrium, prices stabilize.

Let's look from the buyer's perspective first. When prices rise, demand decreases because our money becomes less valuable or because we look for cheaper alternatives. Conversely, if prices fall, we have more money left over and are more willing to buy. This is a basic rule: demand always has an inverse relationship with price.

Now, the sellers. They think differently. When prices are high, they are willing to sell more because profits are higher. But when prices are low, they hold back on selling because it's not worthwhile. The willingness to sell correlates directly with price.

When we combine both sides, at the point where the demand curve intersects with the supply curve, that's the equilibrium. The price and quantity at this point tend to stay stable because if the price rises, sellers will sell more while buyers buy less, leading to inventory buildup and downward pressure on price. Conversely, if the price drops, buyers want more, and sellers hold back, causing shortages and upward pressure on price.

Now, let's apply this to the stock market. Stocks are also commodities. When stock prices rise, it indicates strong buying pressure. Buyers believe the company will grow or perform better. Conversely, if stock prices fall, it shows strong selling pressure, and sellers are losing confidence.

Technical analysts use various tools to capture this buying and selling momentum, such as candlestick charts. A green candle (closing price higher than opening price) indicates buying dominance, while a red candle (closing lower than opening) shows selling dominance. They also look at support and resistance levels—support is where buying interest tends to emerge, and resistance is where selling interest tends to be.

The popular Demand and Supply Zone technique involves identifying moments when prices lose balance—rising or falling rapidly—and then pause within a range. When new factors come in, prices break out of that range and continue in the same direction, signaling a good entry point for traders.

The key thing to remember is that all price movements—whether in stocks, digital assets, or other commodities—are driven by these two forces. If you can read the buying and selling pressure, you can better predict price movements, whether through fundamental analysis, technical analysis, or simply by observing candlesticks on a trading platform.

The most important thing is practice. Observe real market prices, encounter different situations often, and over time, this picture will become clearer to you.