Liquidity Lens is a market depth visualisation feature on FYERS Smart Charts that displays resting buy and sell orders across different price levels. It helps you identify where liquidity is concentrated, compare Bid (buy) and Ask (sell) quantities, and observe how resting liquidity changes alongside price movement.

Unlike regular price charts, which show price movements and traded volume, Liquidity Lens also displays orders waiting to be executed.

How does Liquidity Lens work?

Liquidity Lens represents resting liquidity visually on the chart using:

• White line: Represents the midpoint between price levels where Bid and Ask liquidity dominate.
• Coloured areas: Show resting liquidity at different price levels.
• Liquidity concentrations: Areas with larger resting quantities appear more prominent, helping you identify where liquidity is concentrated.

As resting quantities change, you can observe how liquidity builds up, reduces or shifts across different price levels.

Availability: Liquidity Lens is available on FYERS Web through Smart Charts.

What features are available in Liquidity Lens?

Liquidity Lens combines different views and measurements to help you analyse resting liquidity.

1. Size and Pressure

Size and Pressure help you understand how resting orders are distributed across different price levels.

Size

Size displays the combined resting Bid and Ask quantities at different price levels without separating them by side.

You can use Size to:

• Identify price levels with larger concentrations of resting orders.
• Compare available liquidity across different price levels.
• Observe where liquidity is increasing or decreasing.
  

Pressure

Pressure shows whether Bid or Ask liquidity dominates at different price levels.

• Green areas: Indicate Bid  liquidity.
• Red areas: Indicate Ask liquidity.

You can use Pressure to:

• Identify which side Buy and Sell quantities at different price levels.
• Compare how resting liquidity is distributed between the Bid and Ask sides.
• Observe how the balance changes over time.

You can also hover over a coloured area on the chart to view the resting Bid and Ask quantities at that price level.

Key difference: Size shows the overall concentration of resting liquidity, while Pressure shows which side dominates at different price levels.

2. Order Book and Book Pressure

These features help you understand the current distribution and balance of resting orders.

Order Book

The Order Book displays cumulative Bid and Ask quantities across different price levels.

It includes three reference points:

• B (Best Bid): The highest price buyers are willing to pay.
• A (Best Ask): The lowest price sellers are willing to accept.
• Mid: The midpoint between the Best Bid and Best Ask prices.

The Bid and Ask curves show how resting quantities accumulate as you move away from the Best Bid and Best Ask prices.

This helps you understand whether liquidity is concentrated near the current market price or distributed across a wider range.

Book Pressure

Book Pressure summarises important order-book measurements:

Key difference: Order Book provides a visual representation of cumulative market depth, while Book Pressure summarises the quantities and balance between the two sides.

3. Depth Profile, Liquidity POC and Liquidity Walls

These features help you identify where resting liquidity is concentrated and how it is distributed across different price levels within the visible chart range.

Depth Profile

Depth Profile shows how average resting liquidity is distributed across different price levels within the visible chart range.

It helps you:

• Compare liquidity concentrations across different price levels.
• Identify whether larger quantities are concentrated near or further away from the current market price.
• Understand the overall distribution of resting buy and sell quantities.

Liquidity POC (Point of Control)

Liquidity POC identifies the price level with the highest average resting liquidity within the visible chart range.

It differs from Volume Profile POC:

• Liquidity POC: Identifies the price level with the highest average resting liquidity.
• Volume Profile POC: Identifies the price level where the highest trading volume occurred.

These levels may differ because resting liquidity and executed trades represent different market information.

Liquidity Walls

Liquidity Walls highlight price levels with significant average resting buy or sell quantities across the visible chart range.

Each wall marker displays:

• Price: The price level where liquidity is concentrated.
• Resting Quantity: The average resting quantity at that level.

Liquidity Walls help you identify where substantial buy or sell liquidity has been concentrated. However, these levels do not guarantee support or resistance, as resting liquidity can change over time.

Key difference: Depth Profile shows how average resting liquidity is distributed across price levels, Liquidity POC identifies the level with the highest average concentration, and Liquidity Walls highlight significant concentrations of resting buy or sell liquidity.

Note: These features are based on the visible chart range, so their values and highlighted levels may change when you scroll or zoom the chart.

4. Book Imbalance and Book Spread

These indicators help you track changes in order-book imbalance and spread throughout the trading session.

Book Imbalance

Book Imbalance shows how the balance between resting Bid and Ask quantities changes over time.

• Positive Imbalance: More resting quantity is available on the Bid (buy) side.
• Negative Imbalance: More resting quantity is available on the Ask (sell) side.

The indicator displays two lines:

• Solid line: Represents the imbalance across all available price levels.
• Faded line: Represents the imbalance at the Best Bid and Best Ask prices.

This helps you observe shifts in the balance of resting buy and sell quantities alongside price movement. However, a positive or negative imbalance does not necessarily predict the direction of future price movements.

Book Spread

Book Spread measures the difference between the Best Ask and Best Bid prices over time.

It is displayed in basis points (bps), representing the spread relative to the midpoint between the Best Bid and Best Ask prices. One basis point equals 0.01%.

For example, if the Best Bid is ₹99.95 and the Best Ask is ₹100.05, the spread is ₹0.10, or 10 bps.

• Lower Spread: Indicates a narrower gap between the Best Bid and Best Ask prices relative to the midpoint.
• Higher Spread: Indicates a wider gap between the Best Bid and Best Ask prices relative to the midpoint.

The Bid-Ask spread is one factor that can affect trade execution costs, particularly for market orders.

Monitoring Book Spread alongside market depth provides additional context about liquidity when entering or exiting a position.

Does Liquidity Lens predict future price movement?

No. Liquidity Lens is a market depth analysis tool, not a price prediction system.

It displays resting liquidity, which can change throughout the trading session. For example, more resting Bid quantity does not guarantee an upward price movement. Similarly, a large Sell Wall does not guarantee that price will stop rising.

What If...