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Ok, that's starting to make more sense to me.there's basically a balance between supply and demand that affects the market price, so when it skews heavily towards one way it becomes unbalanced, causing the price to shoot upwards.Tell me if this analogy holds up.Supply and demand are like two sides on a set of scales. If demand is heavier than supply then price goes up. If demand is lighter than supply then price goes down. And if each side is really out of balance it swings up or down by a large amount.So in the case of high volume (weight) and unbalanced supply/demand, it swings by a large amount and at a rapid speed, but with low volume it moves slowly.Am I getting close..?
Ok, that's starting to make more sense to me.
there's basically a balance between supply and demand that affects the market price, so when it skews heavily towards one way it becomes unbalanced, causing the price to shoot upwards.
Tell me if this analogy holds up.
Supply and demand are like two sides on a set of scales. If demand is heavier than supply then price goes up. If demand is lighter than supply then price goes down. And if each side is really out of balance it swings up or down by a large amount.
So in the case of high volume (weight) and unbalanced supply/demand, it swings by a large amount and at a rapid speed, but with low volume it moves slowly.
Am I getting close..?
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