Why does price move?

Before we study supply and demand zones, we must answer a deeper question: why does price move at all? The simple answer is that price does not move on its own; it moves whenever the balance between two forces breaks down: the force of demand (the buyers) and the force of supply (the sellers).

The broken balance

When buying pressure and selling pressure are equal, price keeps drifting within a narrow sideways range; no one is able to settle the direction. But when one force clearly overpowers the other, the balance breaks and price surges hard in the direction of the winning side: it rises if demand dominates, and it falls if supply dominates.