There are many factors that affect supply and demand, such as a company’s earnings and earnings potential, the strength of the overall economy, and alternative investment returns. Demand is the number of orders for shares at a certain price. So, what is supply and demand for stocks? Supply is the number of shares available for purchase at a certain price. Don’t worry, you won’t be analyzing supply and demand curves or studying Coase theorem you’ll just be looking for highs and lows. Technicians use the concepts of supply and demand to explain why trends occur and how human behavior shapes stock price movement. One way to look at technical analysis is that it’s a study in supply and demand. Support and resistance help locate potential levels of excess supply or demand The trend is your friend, so identifying it is important because the trend indicates the supply and demand for a security Technical analysis is a study of supply and demand using price movement and volume
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