Supply and Demand

Definition

Supply and Demand in plain English

This is the simplest idea in all of trading, and everything else builds on it. "Demand" means buyers wanting in; "supply" means sellers wanting out. When buyers are hungrier than sellers, price rises; when sellers outnumber eager buyers, price falls — exactly like concert tickets getting pricey when everyone wants them and cheap when nobody does. Wyckoff called it the first law because price is really just the running scoreboard of that tug-of-war.

Learn these first

• Phase A (Accumulation)
• Phase E (Accumulation)

Related Volume Price Analysis terms

• Engulfing Candle
• Last Point of Support (LPS)
• No Demand Bar
• No Supply Bar
• Test
• Backup to the Edge of the Creek (BUEC)
• Bid Price
• Climactic Volume