How is the price established in trading?

I will try to explain it as clearly as I can, so pay close attention. The price will go up when those who are demanding the asset (Buyers), offer more than what the bidders (Sellers) want to get. It is as simple as that, however, in case it is not clear I will give you an example so you can understand.

Let's see an example

I will take silver as an example this time and round the price to whole numbers. In that sense, if the price increases for example from 1200 to 1201 and more, we must interpret that not everyone can buy at 1200, i.e. there are no more bidders (sellers) with that price. But something happens with this, many times those who do not have enough time to be in the market, are forced to acquire the most expensive asset, it is for this simple reason that the price in this situation continues to grow due to those who agree to buy the silver at 1201. At the same time there will be bidders (Sellers) who were not ready to sell at 1200, but for a dollar more expensive they will surely sell several grams or even a kilogram of silver.

Now, what would happen if those who want to buy run out at 1200 and no one sells at 1199?

The price when we see it on the chart will remain at 1200 until one of the 2 sides surrender, I mean the buyers and sellers, in short, the sellers will surrender to the buyers and agree to pay much more.

How does this happen internally in the market?

It is very complicated to imagine that in the assets are made thousands of operations per minute, which happens all over the world when trading and for example with shares of very small companies, this happens every day, then the conclusion about this is that in this way prices are formed.

Now, talking a little about the reasons why people push to buy and/or sell, not everything is as obvious as it seems. Again I will place an example, a jewelry factory needs silver, the metal to function, so for the production of the same to follow its course, they will buy at market prices, in this way other businesses do the same as this jewelry, also currencies, oil, is negotiated in this way.

In this sense, we can not determine who will sell a large amount of silver or thousands of dollars in the market and much less know when it will happen, so based on this, there are many factors that change the behavior of the investor, either buyers and sellers, it is for this reason that it is very difficult to predict the next movement that will have the price at least 100%. You may wonder, of course that's what the indicators are for, if I learn these to perfection I will be able to predict what direction it will take and they will give you signals of where to do it, but this often fails because they do not match the actual market situation.