1) The beginning in understanding markets (Thread)
The law of demand
The higher the price, the less buyers will it.
The law of supply
The higher the price, the more sellers will sell it.
The law of demand
The higher the price, the less buyers will it.
The law of supply
The higher the price, the more sellers will sell it.
2) The law of supply and demand
Price will always seek the market equilibrium. This is where supply and demand curves cross each other.
Equilibrium is when buyers and sellers have no motivation to buy or sell. But why does the market change anyways?
Price will always seek the market equilibrium. This is where supply and demand curves cross each other.
Equilibrium is when buyers and sellers have no motivation to buy or sell. But why does the market change anyways?
3) Supply and demand shifts
The constant changes in the market are a reflection of buyers and sellers changing their perception about the value of the market.
The constant changes in the market are a reflection of buyers and sellers changing their perception about the value of the market.
4) Difference between Price and Value
Price is the number that represents the current market equilibrium and value is the perception of the price by market participants.
Price is the number that represents the current market equilibrium and value is the perception of the price by market participants.
5) When buyers think the asset is undervalued the demand for the asset increases. This causes the price to increase, because buyers are willing to buy more of the same asset at a given price.
The opposite is true when sellers think an asset is overvalued.
The opposite is true when sellers think an asset is overvalued.
6) Did anyone reach the end and understood anything?
Insert "buy"
This is how you identify the supply and demand zones (1D vs 4H)
These zones do not mean that price will definitely bounce. It just means that there is a high chance that price will bounce since there are a lot of market participant waiting for these prices to either buy or sell
These zones do not mean that price will definitely bounce. It just means that there is a high chance that price will bounce since there are a lot of market participant waiting for these prices to either buy or sell
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