Understanding Liquidity and Market Pullbacks

Awesome explanation of Liquidity by Dionysius - Thank You.

Making the assuming that market movers are on a hunting expedition - hunting liquidity - it would be a great help to filter out data that is distracting - or in other words prevents me from concentrating on liquidity.

Tools such as Jigsaw and other similar software platforms do provide a glimpse into liquidity. But as mentioned above they do not display "invisible data" - hidden orders, HFT programs, or the intentions of a big market mover to suddenly make a play seemingly out of nowhere. And, of course, there is fake liquidity that appears to exist for a little while only to vanish before your very eyes.



On one hand it seems a noteworthy goal to filter out any distractions that keep me from examining liquidity. Yet on the other hand I cannot examine "invisible data" - information I can neither evaluate nor predict.

So if my goal is to eliminate "noise", I better first derive a very exacting definition of the meaning of the term "noise". And that is one overwhelming proposition.