supply and demand

The patterns that prices form on a market chart are created by activity in that market, i.e. buying and selling. This buying and selling depends on supply and demand. For simplicity, demand is represented by buyers while supply is represented by sellers. For example, suppose a company launches a new tablet. If all of these tablets can't move at the price they're selling for, the price will go down .It will continue to fall until prices find an equilibrium with what buyers are willing to pay. On the contrary, when there are more buyers than tablets, the price goes up. financial instruments like currency pairs and stocks are no different. If buyers hesitate to pay 1,125 EUR for 1 USD, the price will go down. And when they are willing to pay that price, the price will go up.