I've just noticed that many people are still confused about supply and demand, which actually are very fundamental concepts for understanding price movements of stocks, commodities, and even digital assets.

Let's clarify what supply is. Simply put, it is the willingness of sellers to sell. When prices go up, sellers are happy to sell more. Conversely, demand is the desire to buy. Therefore, when prices increase, the demand to buy decreases.

In the real market, prices are not determined by just one side of supply or demand, but by the equilibrium point where both sides meet. Imagine this: when buying pressure exceeds selling pressure, prices will rise; and when selling pressure overcomes buying, prices will fall.

There are many other factors that influence supply and demand, such as macroeconomic conditions, interest rates, investor confidence, and even political news. For example, when geopolitical tensions rise, such as the situation in the Hormuz Strait, oil demand spikes rapidly due to transportation route closures.

Looking at the stock market, this principle applies as well because stocks are the same as commodities. When there is good news about a company, consumers and investors tend to buy more, while sellers hold back from selling, causing prices to rise. Conversely, bad news causes buyers to delay purchasing and sellers to be willing to sell at lower prices.

In technical price analysis, traders use various tools to identify points where supply or demand is out of balance. For example, looking at candlestick charts: a large green candle indicates strong buying pressure, while a red candle shows strong selling pressure. Additionally, support and resistance levels are points where supply or demand is waiting to buy or sell.

Using Demand and Supply Zones is a popular technique to catch trading opportunities. It helps traders identify points where prices might reverse or continue the trend. When price runs in a direction indicating imbalance, followed by consolidation within a range, if the momentum in the original direction returns strongly, the price will continue to move.

The key thing to remember is that understanding supply and demand is not difficult if you observe real market prices. The more you practice and study, the clearer it becomes how buying and selling forces operate. From this understanding, you can better predict price trends, which is a valuable skill for all investors.