How to see Liquidity in market?

Yes, & especially on the last day I mean Friday evening. Too much volatile market.

Isn’t it too risky to trade right before market closes?

For me London session is quite good for anyone who wishes to earn up to 15 - 20 pips which can only be possible during this session i guess.

Of course; it’s risky to use! Even I don’t open any single trade in the last 2-3 hours of Friday whatever the trade setup it is.

hi
I just have a question and sorry if it's naive
we trade, the broker gives our orders and trades it with the banks right? but don't the banks trade the spot forex and we the retail traders trade CFD isn't this paradox? how the bank should fill our order?
if the broker or the other traders fill it, it comes logical but when it comes to banks it seems illogical to me because they are not the same type of orders(spot and CFD)
thank you in advanced

Yes, you are right. There is a lot to learn from your information.

Market become nonvolatile during that period. I prefer not to hold a position on weekend.

It's also pretty cool to see liquidty, you need a lot of capital just like high capital hedge funds. For, a retail trader fears that is difficult.

I guess the answer to the question in this thread is better addressed by how one defines liquidity. The actual definition (that used by professionals) is the money available at each price level for which market traders can transact against. These are set in advance by each large entity (in FX) usually banks. This canNOT be seen by anyone except that bank that placed it...this is why the FX market is decentralized. Because the liquidity is anonymous. There is no central exchange so its a bit of a "surprise" when a particular level maintains (holds) or doesn't.

The only way any participant to "see" liquidity is by deducing it from price/volume/order flow activity. How price response to the order flow/volume. And again, in FX the actual volume (size) of transactions is not reported either at the time of transaction nor later. Only the transaction (tick) itself. Thus in order to get a good view or "see" the liquidity you must extrapolate volume (size) from volume (tick) and then compare that to the order flow, and how price responds to it.

Large tick volume and correspondingly big price moves usually indicate limited liquidity. (High demand). Large tick volume and correspondingly small price moves generally indicate deeper pools of liquidity absorbing the order flow. (High supply). Small volume and correspondingly larger price moves show little or no liquidity. (Think major news event or black swan event).

In any event even in the more transparent markets such as stocks and futures, the available liquidity is usually only given 10 price points above and below the LTP (last transacted price). These are usually 10 pips above, or below the LTP in spot fx...but again any spot FX liquidity is extrapolated and NOT "real". You will really need to move out to futures to "see" the actual liquidity available on a tick by tick basis. This is exceedingly difficult to process (mentally) in real time because it changes second by second, tick by tick.

I have found that by looking for areas of absorption I can "see" (in the abstract sense) where deeper pools of liquidity are positioned and make appropriate decisions from there.