What is liquidity?
Is the increase in demand for a certain price in the market.
This signals the strength/weakness of either buyers/sellers of the asset class that you are interested in investing in on at that time.

Although we may not know exactly which price point will have an increased demand for just by looking at price alone, we aid our speculations with candles sticks and other charting tools to assist us in finding "LIQUIDITY" in the market for us to capitalize on.

So below will be my personal view about Liquidity and how to spot it in the market and use it to your advantage.

Picture 1 (naked chart)
kw6iq761.png (3862×2222) (tradingview.com)

Picture 2 (mark ups)
GD6XYulU.png (3862×2222) (tradingview.com)
Your duty here is to study these mark ups and try to look for what you are seeing here on your live chart and back test this for as long as you can till you start to get the whole idea engrained in your head so that this can be your default setting or approach to the market in terms of targets.

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Stay safe, peace.