A short instructional YouTube video by Kardec Trader explaining supply-and-demand fundamentals for trading. The presenter defines the core economic rule (excess supply pushes prices down; excess demand pushes prices up) and frames the trader's task: identify supply and demand zones on charts and observe whether buyers or sellers become more aggressive when price enters those zones.
Our job as traders is to understand how supply and demand works and how we can correlate it to trading. Now, just like anything else, supply and demand's fundamental truth is that whenever supply is more than demand, prices will go down. Whenever demand is higher than supply, prices will go up. Very simple truth. Our job is to take that and incorporate it within our trading. Our job as traders is to identify areas that are of supply and areas that are of demand. Once we identify these areas, our job is then to identify if and when we get into these zones. Do buyers get more aggressive or do sellers become more aggressive?
