Available Liquidity Lens Indicators

FYERS Smart Charts provides five built-in indicators within Liquidity Lens to help you analyse resting liquidity and order-book conditions:

• Liquidity Walls
• Liquidity POC
• Depth Profile
• Book Spread
• Book Imbalance
  

Analysing Liquidity Using the Five Indicators

1. Depth Profile – Understand Liquidity Distribution

Depth Profile displays how resting order quantities are distributed across different price levels within the visible chart range.

It helps you compare liquidity concentrations and identify whether larger quantities are positioned near the current market price or further away.

When used alongside Liquidity POC, Depth Profile provides a broader view of how liquidity is distributed around the price level with the highest concentration.

2. Liquidity POC – Locate the Highest Liquidity Concentration

Liquidity POC (Point of Control) identifies the price level with the highest concentration of resting liquidity within the visible chart range.

It helps you locate where the largest concentration of resting orders is positioned in the range you are analysing.

Liquidity POC differs from Volume Profile POC: Liquidity POC is based on resting orders, while Volume Profile POC identifies the price level where the highest executed trading volume occurred. These levels may differ because they measure different market activity.

3. Liquidity Walls – Identify Large Resting Orders

Liquidity Walls highlight price levels where substantial buy or sell quantities are resting in the order book.

Each wall marker displays the price level and the resting quantity available at that level.

This helps you identify significant liquidity concentrations and observe whether those quantities remain, increase, decrease or disappear as price approaches them.

4. Book Imbalance – Compare Bid and Ask Liquidity

Book Imbalance shows how the balance between resting Bid (buy) and Ask (sell) quantities changes during the trading session.

• Positive Imbalance: Indicates more resting quantity on the Bid side.
• Negative Imbalance: Indicates more resting quantity on the Ask side.

Monitoring Book Imbalance helps you observe which side has more resting liquidity and how that balance changes alongside price movement.

5. Book Spread – Monitor the Bid-Ask Price Difference

Book Spread measures the difference between the Best Ask (lowest selling price) and Best Bid (highest buying price).

The spread is displayed in basis points (bps), which represent the price difference relative to the market price. One basis point equals 0.01%.

• Lower Spread: Indicates that the Best Bid and Best Ask prices are closer together.
• Higher Spread: Indicates that the difference between the Best Bid and Best Ask prices has widened.

Monitoring Book Spread helps you identify changes in the Bid-Ask price gap, which can affect trade execution costs, particularly when placing market orders.

Reading the Indicators Together

Each indicator provides a different perspective on market liquidity. Using them together helps you understand where resting orders are concentrated, how they are distributed, and how order-book conditions change.

For example, when a large Liquidity Wall appears near the current market price:

• Liquidity POC helps you check whether that level also has the highest concentration of resting liquidity in the visible range.
• Depth Profile helps you examine how liquidity is distributed at surrounding price levels.
• Book Imbalance helps you compare the resting quantities on the Bid and Ask sides.
• Book Spread helps you monitor whether the gap between the best buying and selling prices is narrowing or widening.

Comparing these observations with price movement helps you assess how available liquidity and order-book conditions change as the market approaches significant price levels.

Note: Liquidity Lens indicators provide information about resting orders, which can be placed, modified, executed or cancelled. Liquidity concentrations, imbalance and spread changes do not guarantee support, resistance or future price movements.