Market demand, excessive demand and supply
Today we will study the real market charts and the define what is supply, demand and excessive demand on a chart.
My chart is self explanatory.
When market is demanding a product, the price often stabilize in a local volatile region (sideways). The volatility tells us that buyers WANT this product and the sellers willing to bargain on price. Thus it goes little up and down within a stable level.
When market is excessive demanding a product, the price is rising from the stable market bargain demand zone . The price is no longer volatile, but going up (rallying). The rise tells us that buyers REALLY WANT this product and the sellers willing to raise the sell price.
When market is supplying a product, the price is falling from the stable market bargain demand zone . The price is no longer volatile, but going down (dumping). The falling tells us that buyers DON'T WANT this product and the sellers willing to dump the price to cash out as much as possible.
My chart is self explanatory.
When market is demanding a product, the price often stabilize in a local volatile region (sideways). The volatility tells us that buyers WANT this product and the sellers willing to bargain on price. Thus it goes little up and down within a stable level.
When market is excessive demanding a product, the price is rising from the stable market bargain demand zone . The price is no longer volatile, but going up (rallying). The rise tells us that buyers REALLY WANT this product and the sellers willing to raise the sell price.
When market is supplying a product, the price is falling from the stable market bargain demand zone . The price is no longer volatile, but going down (dumping). The falling tells us that buyers DON'T WANT this product and the sellers willing to dump the price to cash out as much as possible.