The Laws of Supply and Demand Affects the Price Movement

The Laws of Supply and Demand Affects the Price Movement

1. When supply exceeds demand, the price is more likely to fall.
2. As the price is falling, supply will increase, and demand will decrease. As a result, the price will fall faster.
3. At valleys, demand is greater than supply; therefore, the price is more likely to increase.
4. At peaks, supply is greater than demand; therefore, price is more likely to fall.
5. As the price trends higher, demand is greater than supply; therefore, price is more likely to go higher.

Thank you for reading!

Greenfield








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Disclosure: Article written by Greenfield. A market idea by Greenfield Analysis LLC for educational material only.