How to evaluate liquidity practically, whether from the chart or from the trading platform:
🔎 First: From the chart
Trading volume (Volume):
It's the column you see below the candles (Bars).
The higher and more frequent the volume (and not just in one candle), the higher the liquidity..
If the volume is weak and intermittent, this indicates low liquidity.
The candles themselves:
In high liquidity: the candles are regular, and the gaps (Gaps) are few.
In weak liquidity: abnormal candles appear, with long tails, and price jumps.
📊 Second: From the trading platform (Order Book & Spread)
Order Book:
If you see many buy and sell orders in large quantities, this means high liquidity.
If the orders are few or small, the liquidity is weak.
Spread:
The difference between the ask price (Ask) and the bid price (Bid).
If the difference is very small → the market is liquid (Liquid).
If the difference is large → the market is illiquid (Illiquid).
✅ Practical tips:
Always choose assets (currencies or stocks) with a large daily trading volume.
Avoid entering weak liquidity currencies unless you have a clear plan, as exiting them when needed is difficult.
In cryptocurrencies, monitor the daily trading volume on a site like CoinMarketCap or from the same platform...
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