Lesson Plan
Supply and Demand set the price for the market. The supply is essentially what the sellers want to sell for (think of the Ask Price). The demand is what buyers want to buy for (Bid Price).
As supply increases, the value of an item drops. As demand for an item increases, so does the value.
Supply has an inverse relationship with price. As supply rises, price falls.
Demand has a direct relationship with price. As demand rises, price rises.
How to remember:
“Supply = Sell” 🔻 Price falls from supply zones
“I Demand to Buy” 🔺 Price rises from demand zones