In this article I will explain what is liquidity in financial markets. First we will look at the definition of this technical term, accompanied by a concrete example. Then we will look at liquidity in the traditional market and finally in the cryptocurrency market. We will conclude with the tools that exist to assess liquidity.
TA (Technical analysis) is the prediction of future price movements based on an examination of past movements. Like weather forecasts, technical analysis does not lead to absolute predictions of the future. Instead, technical analysis can help investors predict what is “likely” to happen over time. It is a tool, just like fundamental analysis.