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Supply and demand is a concept used in technical analysis that was made famous by Sam Seiden. Saying “supply and demand” is simply another way of saying support and resistance.

As you may already know, support and resistance are basic building blocks in technical analysis. Whether you are using indicators or chart patterns, they all follow the rules of support and resistance.

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But supply and demand are not exactly the same as support and resistance. While support and resistance are usually single price points, supply and demand depict a price area. Despite this minor change, supply and demand work on the same principles of support and resistance.

Support and resistance or supply and demand are derived on the central concept of the basic functioning of an economy. They are also a vital part of the functioning of a free market.

When there is ample supply, the price reflects this by falling. Similarly, when ...

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