Does anyone know how to display a local image in markdown? I don't want to setup a webserver for that.
I try the following in markdown, but it doesn't work:

19 Answers
I suspect the path is not correct. As mentioned by user7412219 ubuntu and windows deal with path differently. Try to put the image in the same folder as your Notebook and use:

On windows the desktop should be at: C:\Users\jzhang\Desktop
The following works with a relative path to an image into a subfolder next to the document:

Solution for Unix-like operating system.
STEP BY STEP :Create a directory named like
Imagesand put all the images that will be rendered by the Markdown.For example, put
example.pngintoImages.To load
example.pngthat was located under theImagesdirectory before.

Note : Images directory must be located under the same directory of your markdown text file which has .md extension.
To add an image in markdown file the .md file and the image should be in the same directory. As in my case my .md file was in doc folder so i also moved the image into the same folder. After that write the following syntax in .md file

like 
This has worked for me.
The best solution is to provide a path relative to the folder where the md document is located.
Probably a browser is in trouble when it tries to resolve the absolute path of a local file. That can be solved by accessing the file trough a webserver, but even in that situation, the image path has to be right.
Having a folder at the same level of the document, containing all the images, is the cleanest and safest solution. It will load on GitHub, local, local webserver.
images_folder/img.jpg < works
/images_folder/img.jpg < this will work on webserver's only (please read the note!)
Using the absolute path, the image will be accessible only with a url like this:
if image has bracket it won't display
.png)
rename the image and remove brackets

Update: if you have spaces in the file path, you should consider renaming it too or if you use JavaScript you can encode it using
encodeURIComponent(imagePath)
Also, always try to save images and files alike with lowercase, please develop that habit, just my personal view though
Adding a local image worked for me by like so: 
Without the file:// prefix it did not work (Win10, Notepad++ with MarkdownViewer++ addon)
Edit: I found out it also works with html tags, and that is way better:
<img src="file://IMG_20181123_115829.jpg" alt="alt text" width="200"/>
Edit2: In Atom editor it only works without the file:// prefix. What a mess.
Depending on your tool - you can also inject HTML into markdown.
<img src="./img/Isolated.png">
This assumes your folder structure is:
├── img
└── Isolated.jpg
├── README.md
Edited:
Working for me ( for local image )

tree
├── doc
└── jobsSystemSchema.jpg
├── README.md
markdown file README.md is at the same level as doc directory.
In your case ,your markdown file should be at the same level as the directory files.