If you've ever been on a floor -- noise equals liquidity...and where's there's liquidity, there's opportunity. I'm not sure if you guys are daytraders (?), but watching the tape for "noise" is a huge signal that if you are planning on making a trade with (slightly) less fear of liquidity risk...then it's time to hit the tape.
Filter one type of the noise that you particularly like and follow! It doesn't matter what tools we are using or what type of the market "noise" we are trading. What matters is the accuracy of the response that we can exhibit by processing the noise.
As for noise vs efficiency as regards to liquidity -- doesn't noise go up in proportion to the number of players and the volume they provide? Those commodity and stock charts pre-information age look awfully smooth and steady in getting from point A to B. Noise is the direct result of a market getting "overly" efficient (too many people seeing the same things or playing the same move) and thus needing some pruning.
More truths about how to confidently manage the markets and easily profit from their movements, truly great.
You are partially correct. The more participants are in the market the higher the frequency of the noise. At the same time, as the amplitude distribution (or harmonics weights) is constantly shifting towards higher frequencies, the longer term moves involve less and less participants. The higher frequency noise is also supported by reduction of the response time exhibited by execution systems. That is why "old" charts looks awfully smooth. Try to "compress" them (or shift the frequency band) and you'll see a chart similar to today's charts.
BTW, one easy way to assess the frequency of the noise is to calculate the average time that it takes for a security to move X points either direction. Try it, its an eye opener.