CHART EXAMPLES OF LIQUIDITY:
CASH AND FUTURES

AUSTRALIAN DOLLAR

Below is a (regular trading hours) chart of the Australian dollar futures.  Very illiquid.  Look at all the gaps.

Above is the Australian dollar cash chart.  High and constant liquidity are evident.  Notice there are no gaps.

DEUTSCHE MARK

In this example, we have a (regular trading hours) chart of the March Deutsche mark futures. All those gaps make it quite difficult to trade.

Above is the cash Deutsche mark.   No gaps here.  (Quite a difference between the futures and the cash.) 

BRITISH POUND

Here we have a (regular trading hours) futures chart of the British pound.  Notice all the gaps. 

The above example is a cash chart of the British pound.  Notice again, there are no gaps. (Makes it a lot easier and safer to trade.)

JAPANESE YEN

(Regular trading hours) Japanese yen futures chart.  Even the yen, a very popular market, is riddled with gaps.

Here's the cash version of the yen.  No gaps, no problems.

(If you're wondering why the Australian dollar and the British pound charts look like they're moving in the same direction on both the futures and the cash, while the Deutsche mark and the Japanese yen are heading in opposite directions, remember; most cash is quoted in currency per dollar, whereas the futures are quoted as dollar per currency, except for the British pound, the Australian dollar which are quoted as dollar per currency in both.)

The information contained here was gathered from sources deemed reliable, however, no claim is made as to its accuracy or content.  This does not contain specific recommendations to buy or sell at particular prices or times, nor should any of the examples presented be deemed as such.  Furthermore, no representation is being made that any of the examples shown resulted in actual trades.  This is not, nor is it intended to be, a complete study of chart patterns or technical analysis and should not be deemed as such. There is a risk of loss in trading and investing and you should carefully consider your financial position before making any trades.

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