Lesson 1 of 6 · Market Foundations
How a market moves
Every price is an agreement.
When a buyer and a seller meet at the same number, a trade happens. That trade sets the price. The next trade starts from there. A chart is thousands of those agreements drawn in sequence.
Buyers winning the negotiation.
Each bar is one period. When more buyers than sellers compete for shares, they bid higher to get filled. That pressure over time creates a trend: a series of higher prices, step by step.
Two forces move price.
liquidity describes how many trades can happen at a given price without moving it much. Thick liquidity means you can trade large without slipping. volatility measures how fast prices swing. High volatility is high opportunity and high risk at the same time.
A stock has far more buyers than sellers at the current price. What happens next?
Show the answer
C. Price rises. When buyers compete for limited supply, they bid the price up. That's supply and demand at work.