Supply and Demand
a.k.a. Supply & demand
The basic force behind every price: how much people want to sell versus how much they want to buy.
In plain English
The basic force behind every price: how much people want to sell versus how much they want to buy.
Supply and demand is the engine under every chart. When more people want to buy (demand) than sell (supply) at the current price, the price rises until enough sellers are tempted in. When sellers outnumber buyers, it falls until buyers step up.
Every news event, indicator and pattern ultimately works by changing who wants to buy or sell. Traders also use "supply and demand zones" to mark areas on a chart where big imbalances happened before and might again.
Keep this word for good
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