mikeynero

Hello all, I am a relatively new trader, and am trying to understand who is in control. Most literature I’ve read on rising and declining prices, declare that if prices are rising the bulls are in control, and when declining the bears. Also stated is that when prices rise to a level where sellers overwhelm buyers (supply) prices begin to fall, and when declining to a level where buyers overwhelm sellers (demand) prices begin to rise. I am struggling with this concept and trying to understand. Although this seems logical on the surface, the idea seems fundamentally backwards to me – hear me out: When prices are rising: If I am a buyer and demand is so high that my bid to buy a security is not met, and I am “forced” to raise my bid to buy the security, then in my thinking the seller is in control not the buyer. When prices are declining: If I am a seller and supply is so high that my ask prices to sell the security is not met, and I am “forced” to lower my ask in order to sell, then in my thinking the buyer is in control not the seller. Therefore when prices rise to a level where buyers are no longer willing to bid up for the security, then buyers have overwhelmed sellers, “forcing” them to ask less and the price declines. When prices decline to a level where sellers are no longer willing to ask less, then sellers have overwhelmed buyers forcing them to bid up and prices begin to rise. I realize that the conventional thinking is that buyers want prices to go up, and sellers want prices to go down. The dichotomy is that as a buyer I only want prices to go up AFTER I purchase, and as a seller want them to go down AFTER I sell. So the battle is with the active buyers and sellers. Ok, so I know the real key is understanding support/resistance supply/demand. I am just trying to get a handle on all of this. Thoughts?