Understanding supply and demand in market
In economics, supply and demand example is demand decreases and prices rise while demand will pick up as prices falls to low. But In practical trading, stocks, futures, commodity or currency futures follows auction based model.
In auction practical example is when demand for the item rises as prices soars. And if no one interested in item that goes in box without bid. That why in auctions, buyer’s does not care for items intrinsic value. This can be easily visible on intraday chart of stocks because in single day nothing much changes at company fundamental level but on news flow and on market reactions we might see wild swing in company share prices towards both ends.