Liquidity Signals

Liquidity Signals in Markets refer to changes in market depth that affect price reliability.

Liquidity is often assumed during calm periods but becomes critical during stress.
‍

Liquidity and Forecast Confidence

Monitoring liquidity signals helps organizations to:

• Assess reliability of price movements
• Anticipate stress-related distortions
• Interpret forecast uncertainty

Liquidity as information

Sudden liquidity changes can amplify volatility and weaken price signals.

At Datasphere Analytics, liquidity is monitored as a contextual input for forecast confidence.

‍