Why Price Moves (Supply, & Demand)
Before we ever talk about charts, indicators, or strategies, you need to understand one core truth: Price only moves because of buyers and sellers. The stock market is not random. It’s not controlled by indicators. And price doesn’t move just because a line crossed another line. At its core, the market is an auction. Every single candle you see on a chart represents a battle between buyers and sellers. When there are more buyers than sellers, price moves up. When there are more sellers than buyers, price moves down. That’s it. Everything else is built on top of this. This is called supply and demand. - Demand = buyers willing to buy at a price - Supply = sellers willing to sell at a price If buyers are aggressive and willing to pay higher prices, the market moves up. If sellers are aggressive and willing to sell at lower prices, the market moves down. Price is constantly moving to find balance between these two forces. What Is Liquidity? Liquidity simply means available orders in the market. Big institutions can’t just buy or sell whenever they want. They need enough buyers or sellers on the other side of their trades. That’s why price often: - Moves fast near highs or lows - Spikes during market open - Reacts strongly at obvious levels Those areas are full of liquidity. The market is always searching for liquidity so large players can enter and exit positions. This is also why price doesn’t move smoothly. It jumps, pauses, and explodes — because liquidity isn’t evenly distributed. Why Some Times of Day Move More Than Others Price moves best when volume and liquidity are high. That’s why: - The New York market open is active - Certain hours are slow and choppy - Breakouts often fail when volume is low The market needs participation to move. No volume = no real movement. Key Takeaway Indicators do not move price. Patterns do not move price. News does not magically move price. Orders move price. Were these videos helpful?