Does selling make the price go down?

[SunTrader]

Good morning down there in hot sunny Boca Raton.

So what causes a drop in prices. Lack of demand so price goes down to where buyers are willing to buy OR LACK supply as inventories are drained OR lack of supply because sellers are backing off their offers therefore, buyers have to bid more if they want what is being sold?

A lot of peeps don't realize it is often less hot relatively speaking but still sunny down here in South Florida during the summer months than up north - thanks to sitting between the Gulf and the Atlantic. Inland areas radiate and magnify.

But as for drops, not all are created equally. More often than not "normal" drops happen on lower volume. IMO I see that as a lack of strong buying support and that lack of supply as being one and the same. Again vice versa for most "normal" upmoves.

 

[Aaronpp]

When a product or service is sought by a large number of customers it is practically inevitable that its price will fall due to the supply rule-demand, supply of the item in question is very high in its quantity of units and the demand is high, prices must be lowered to generate greater purchases in comparison in which they maintain the value.

 

[murray t turtle]

Lack of strong buying causes drops which then causes selling to overwhelm what little buying there is and vice versa.

%% That;
+ mutual fund redemptions, many of those redemptions come @ worst possible time. And just like market orders in a good uptrend help price up ; market orders may help knock price down in a bear/slippage. Even my pet birds fly/glide downhill easier; now back to the bull market uptrend.,