Here is an explanation of the concept of liquidity without complication
I will give an example
If the price of the currency =1850 and the liquidity volume =100 here the currency will rise and the price of the currency will become =4500 and investors will take their profits throughout this rise variably and the liquidity volume will become = 30 here it means liquidity is weak and the price must drop because there is no money and in this case you find investors placing buy orders at a certain point that may be around the previous price for the chart to take this liquidity by force unless some big investors intervene with direct entry and force the market to rise that is why liquidity must be monitored continuously
As shown in the image
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I will give an example
If the price of the currency =1850 and the liquidity volume =100 here the currency will rise and the price of the currency will become =4500 and investors will take their profits throughout this rise variably and the liquidity volume will become = 30 here it means liquidity is weak and the price must drop because there is no money and in this case you find investors placing buy orders at a certain point that may be around the previous price for the chart to take this liquidity by force unless some big investors intervene with direct entry and force the market to rise that is why liquidity must be monitored continuously
As shown in the image
If you completed reading, support me with a like and a comment and follow me
And don’t forget to visit my page regularly for more benefit
#BinanceAlphaPoints
#TariffPause
#BinanceHODLerSIGN
#BTCvsMarkets
#INitOnBinance