While most traders closely monitor price movements, only 25% of market participants pay attention to trading volumes, which is one of the most important tools for confirming signals. Research conducted by The Academy of Trading in 2025 showed that traders using volume analysis on Pocket Option, increase the accuracy of their forecasts by a third.
Trading volumes are the number of contracts concluded over a certain period of time. Like a detective examining footprints at a crime scene, a competent trader extracts valuable information from this data. Volumes show the strength of market movements, confirm or deny trends, signal possible reversals, and help determine the true intentions of major players.
Fundamentals of volume analysis on Pocket Option
The Pocket Option platform provides volume data in the form of a histogram below the main price chart. Each column corresponds to the selected time interval and reflects the trading activity. High columns mean a large number of transactions, low columns mean weak activity.
Key principles of volume interpretation:
- The volume growth along with the price confirms the strength of the trend.
- A drop in volume with an increase in price signals a possible reversal.
- High volumes at pivot points often indicate a trend change.
- Abnormally high volumes draw attention to important price levels.
- Low volumes during consolidation indicate preparation for a strong movement.
To effectively apply these principles, a trader needs to adjust the volume indicator on his chart. In the Pocket Option, this is done through the “Indicators” → “Volume” menu. By default, the volume histogram is displayed at the bottom of the screen, but the user can change its color and size for ease of analysis.
It is important to understand that the volumes on Pocket Option reflect the number of transactions, not their financial size. This is different from the stock market, where volume is measured in monetary terms. This feature makes the analysis more accurate for determining the activity of a mass trader.
Basic volume patterns and their meaning
An experienced trader sees in a volume histogram not just a set of bars, but patterns that form clear patterns. Recognizing these patterns significantly improves the accuracy of forecasts.
The main volume patterns on Pocket Option:
- “Volume climax” — a sharp surge in activity exceeding the average values by 3-5 times, often signals the end of the trend.
- The “calm before the storm” is a series of declining volumes before a strong price movement, indicating preparations for a breakout.
- “Confirmation” — the volume growth at the breakdown of an important level indicates the strength of the movement.
- “Divergence” — the discrepancy between the price direction and volumes — warns of a possible reversal.
- “Depletion” — a consistent decrease in volumes while maintaining the price direction, signals the imminent end of the movement.
The “Peak volume” pattern deserves special attention. When an abnormally high volume appears after a prolonged trend, it often means that the market has reached a point of maximum interest. Such moments often become turning points. For example, in February 2025, after a 14-day growth, the EUR/USD pair showed a volume exceeding the average by 4.2 times, followed by a reversal and a decrease of 170 points.
The “Divergence” pattern requires a special approach to analysis. If the price continues to rise, but volumes decrease, this indicates a weakening of the movement. Pocket Option traders use this situation to prepare for opposite trades, waiting for a trend reversal.
Integration of volumes with technical indicators
Volume analysis is particularly valuable when combined with technical indicators. This comprehensive approach allows you to filter out false signals and find the most reliable entry points into the market.
Effective combinations on Pocket Option:
- Volume + MACD – confirmation of the signals of the intersection of the indicator lines.
- Volume + support/resistance levels – assessment of the significance of price levels.
- Volume + RSI – identification of true divergences.
- Volume + moving averages – filtering false breakouts.
- Volume + Bollinger Bands – determination of the strength of the price going beyond the bands.
The “Volume Confirmation” strategy is particularly popular among Pocket Option traders, in which entry into the market is carried out only when the signal of the technical indicator coincides with the corresponding volume behavior. For example, when the resistance level breaks, the trader expects an increase in volumes to confirm the strength of the movement.
A specific example: trader Alexey from Moscow used a combination of RSI and volume analysis to trade on Pocket Option. When the RSI was oversold (below 30), it entered the market only if volumes decreased, indicating a weakening of selling pressure. This approach increased the percentage of successful transactions from 61% to 78% over a three-month period.
The integration of volume analysis with technical indicators requires setting up the chart to display all the elements simultaneously. In Pocket Option, this is implemented by saving custom templates, which allows you to quickly switch between different sets of analysis tools.
Features of volumes on different timeframes
The volume data varies significantly depending on the selected time interval. The ability to interpret these differences is the key to a comprehensive understanding of the market situation.
Volume characteristics on different timeframes:
| Timeframe | Volume analysis features | Application |
| 1 minute | High volatility, a lot of “noise” | Scalping, short-term deals |
| 5 minutes | Clearer patterns, fewer false signals | Intraday trading |
| 15-30 minutes | Balanced signal-to-noise ratio | Medium-term strategies |
| 1 hour | Explicit identification of significant levels | Swing trading |
| 4 hours and above | Reflection of global market trends | Long-term strategies |
Pocket Option traders often use multi—time frame volume analysis – they study data at multiple time intervals to get the full picture. For example, after determining the trend direction on the 4-hour chart, they switch to the 15-minute chart to find an entry point confirmed by the corresponding volumes.
An interesting pattern is observed when comparing volumes on different timeframes. If there is an increase in volumes in the older time range and a decrease in the younger one, this often indicates a temporary consolidation before continuing the movement. Such an analysis helps to avoid entering the market during corrections.
Volume indicators for in-depth analysis
In addition to the standard volume histogram, Pocket Option offers specialized indicators that provide a deeper understanding of market activity.
Key volume indicators on the platform:
- Volume Profile – displays the distribution of volumes by price levels.
- The Balance volume (OBV) is a cumulative indicator that shows the flow of volumes.
- The Cash Flow Index (MFI) takes into account both the volume and the direction of the price.
- Chaikin Money Flow – measures the pressure of buyers and sellers.
- Weighted Average price by volume (VWAP) — the weighted average price by volume.
The Volume Profile indicator deserves special attention. It forms a horizontal histogram showing which price levels had the most activity. High volume zones often become key support or resistance levels. Traders use this information to set profit targets and set stop losses.
Balancing Volume (OBV) is one of the most popular indicators among Pocket Option traders. It adds up the volumes on the days of the price increase and subtracts the volumes on the days of the decrease. The result is a cumulative line reflecting the pressure of buyers or sellers. If OBV is rising and the price remains stable, it often portends future growth. The reverse situation signals a possible decline.
The Cash Flow Index (MFI) combines volume analysis with the elements of the RSI indicator. It measures the rate at which money enters and leaves the market. Values above 80 indicate overbought, below 20 — oversold. Divergences between MFI and price are considered strong reversal signals.
Practical volume trading strategies
Volume analysis is not just a theoretical tool. On its basis, specific trading systems are created that bring stable results on Pocket Option.
Effective volume strategies:
- “Breakdown with confirmation” — entry after the breakdown of the level with an increase in volume.
- “Volume absorption” — search for bars with a volume significantly higher than the previous indicators.
- “Quiet consolidation” is an entry after a period of low volumes and a narrow price range.
- “Volume divergence” is the definition of reversals based on the divergence of price and volume indicators.
- “Reading sellers and buyers” is an analysis of the color labeling of volume columns.
The “Volume absorption” strategy demonstrates high efficiency on currency pairs. The point is to find bars whose volume exceeds the average over the last 10 periods by 2-3 times. Such a surge in activity often indicates a strong interest in the asset and portends a continuation of the movement. To increase accuracy, the signals are filtered according to the trend direction.
“Quiet consolidation” is a strategy for patient traders. It is based on the observation that after a period of low volatility and volumes (3-5 bars with volume below average), a sharp movement often follows. Entry is made at the first bar with above-average volume and closing outside the consolidation range.
For the “Reading sellers and buyers” strategy, the color-coded volumes on the Pocket Option are used. The green columns correspond to the predominance of buyers, and the red columns correspond to the predominance of sellers. A sequence of 3-4 columns of the same color with increasing volume indicates the formation of a steady pulse in the appropriate direction.
Common errors in volume analysis
Even experienced traders sometimes make mistakes when interpreting voluminous data. Understanding these mistakes helps to avoid false conclusions and financial losses.
Typical misconceptions in volume analysis:
- Ignoring the market context is volume analysis without taking into account the overall market situation.
- The search for ideal patterns is the expectation of exact compliance with theoretical models.
- Obsessing over a single timeframe is a rejection of multi—level analysis.
- Ignoring seasonality is ignoring the time of trading sessions and days of the week.
- Trading against the trend based on volume data only.
The most common mistake is to react to a single surge in volume without confirmation by subsequent bars. Volumes, like price, need context. Isolated high volume may be the result of technical factors or a news spike that does not reflect the true mood of the market.
Underestimating the time of trading sessions also leads to incorrect conclusions. Volumes naturally increase during the European and American sessions and decrease during Asian hours. Comparing volumes between these periods without an appropriate correction distorts the analysis.
Conclusion: volumes as the secret weapon of a successful trader
Analysis of trading volumes on Pocket Option opens up a new level of understanding of the market. Like a seismograph that records tremors before an earthquake, volumes allow you to see emerging trends before they fully manifest themselves in price movements.
The combination of volume analysis with technical indicators and graphical patterns creates a powerful synergy that significantly improves the quality of trading solutions. Traders who have mastered the interpretation of volume data gain an important advantage over those who focus solely on price movements. The Trading Academy recommends including volume analysis in your daily trading routine. Start by simply comparing current volumes with average values, gradually moving on to more complex methods. Remember that the best teacher is practice, and the Pocket Option tools provide everything you need to study this aspect of market analysis in depth.
