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Supply & Demand
Market StructureThe fundamental economic force behind all price movement. When buyers (demand) outnumber sellers (supply), prices rise. When sellers outnumber buyers, prices fall. Every price change is a shift in the balance between buying and selling pressure.
Related Terms
Support
A price level where buying pressure tends to overcome selling pressure, causing the price to stall or bounce upward.
Resistance
A price level where selling pressure tends to overcome buying pressure, causing the price to stall or reverse downward.
Volume
The number of shares or contracts traded in a security during a given period.
Liquidity
How easily a security can be bought or sold without significantly affecting its price.