WY-01-03 / 01
Supply and Demand
First Principles
Sam Rivera
Lesson / WY-01-03
The law of supply and demand describes the basic conditions behind price changes. In a continuous double-auction market, many buyers and sellers can continually submit, modify, cancel, and execute orders during trading hours. A buy limit states the highest price that buyer will pay; a sell limit states the lowest price that seller will accept. These are specific conditions entering the order book at that moment, not fixed valuations shared by all buyers or sellers. A buyer willing to accept the lowest current ask trades against sell orders there; a seller willing to accept the highest current bid trades against buy orders there. This is an ongoing matching mechanism in which both sides can quote. It differs from a call auction that collects orders to calculate a price at a single time, such as the close, and from successive bidding for an individual item.
The course video is not yet available. This interface demo uses a separate MT animation, not the lesson video.
Read the Chapter ↗Demo timestamps
9 lessons · Chapter contents
01Supply and Demand↗02Matched Trades and Relative Supply-and-Demand Strength↗03The Continuous Double Auction: How Orders Form Prices↗04Judging Relative Strength through Progress and Obstruction↗05Location and Comparisons over Time↗06A Single Bar and a Single Breakout↗07Testing Supply-and-Demand Judgments with Subsequent Price Action↗08Stronger Demand and Reduced Supply Are Different Processes↗09Balance Is Not Stillness↗The course transcript will be available with the finished video. The captions below belong to the interface demo.
Observe the market: start with context and place price within its structure.
Understand structure: compare supply and demand, and let evidence support or revise your hypothesis.
Form a view: define risk limits and know when to reassess.
No matching captions.
What the Wyckoff Method Studies
The Composite Operator Model and Strategic Interaction in Trading
