Those traders who have encountered volumes on real exchanges may think that using them in binary options trading will not work, but this is not so. You can trade binary options using currency pairs , stocks or cryptocurrencies . And as you know, on stock exchanges and cryptocurrency exchanges there are trading volumes that are available to any trader.

Content:

What are volumes in binary options and where do they come from?

Regardless of the market or the phase of the trend, price tends to move in waves, and if you look at such waves in more detail, it becomes clear that the price is simply moving from zone to zone. These can be simple levels of support and resistance , or zones of supply and demand. Simply put, if demand prevails in the market, then the price rises and stops at supply levels, and at moments of prevailing supply, the price will stop and reverse at demand levels. The levels can be schematically depicted as follows:

Put option from volume levels in binary options

The lower price level is support or demand, and the upper price level is resistance or supply. And when the price reaches a lower level, many traders may decide that the price has reached its lowest point and will begin to buy the asset, since such a price will look cheap. When the price reaches the upper level, the same thing will happen, but on the contrary - the price will seem expensive and many will begin to sell the asset. Taking all of the above into account and considering the following example, it already becomes clear that as soon as the price reached the upper level (resistance), a lot of selling occurred and this reduced the price.

Sales in this case occur not only on the market, but also with pending orders, so it will not always be correct to call such places levels, since these will be zones (sales occur in a range and not at the same price, but at different ones).

When the price reaches the lower level, most traders will close their sales by buying the asset, and they will also be joined by other traders who want to buy at a low price.

Such actions, accordingly, will cause the price to rise, and on this rise even more new traders will join the movement, which will increase trading volumes:

trading volume increase chart

Vertical volumes in binary options

If we talk about volumes, it now becomes clear why they increase in certain places and are very low in other places. During moments of high trading activity, volumes will increase, and, for example, in a flat , volumes are almost always at a low level, since price fluctuations are in a narrow range. And if we take the previous examples and consider them with volumes, then a price reversal from the resistance level could look like this:

Volumes in binary options and Put

While the market was experiencing a flat, volumes were low, but as soon as the price approached a level that was interesting to traders, the number of transactions increased sharply, and accordingly, the volume increased. The same thing would happen if the price approached the lower level:

Volumes in binary options and Call

Buying increases and therefore the volume even on the move increases as new traders join the growth.

Horizontal volumes in binary options

Tick ​​volumes in binary options trading are used not only in the form of classic vertical histograms that display the volume of each individual bar on a separate panel below the chart. They allow you to use cluster analysis in binary options trading and, on its basis, build a market profile, or, as it is also called, horizontal volume.

Horizontal volume reflects the number of completed transactions at a certain price level. Indicators can visualize this information in different ways, but most often the horizontal volume is reflected in the form of a vertical histogram on the left or right side of the chart, as, for example, the indicator for binary options VP6 Range does:

display of horizontal volumes in VP6 Range

Market Profile is based on the work of Peter Steidlmeier, who back in 1984 explored the importance of volumes in level trading and reflected them in the form of horizontal volumes. According to Steidlmayer's theory, the market always tends towards a balanced distribution, which is reflected in the form of a bell-shaped market profile histogram.

bell-shaped volume histogram

In the value zone (the central part of the bell), buyers and sellers are in equilibrium close to the fair price. This is where about 70% of transactions take place. The level with the maximum volume for the analyzed period is called the point of control or POC (Point Of Control).

In distribution zones, the market is in a state of imbalance as the dominant buyers or sellers seek a new fair price. Strong trend movements usually occur in the distribution zone.

It is believed that, being in an imbalance, the price always tends to return to the value zone or form a new such zone. Thus, the VAH, VAL and POC levels are a kind of magnets that attract price. These levels serve as support and resistance , which is the basis of many binary options trading systems, such as the ASG GRAAL VOLUME SISTEM.

Volume in binary options and trend movements

During a trend, volume can also be an important indicator and provide additional clues. In an uptrend, not only updates of extremes can be accompanied by increased volumes, but also corrections that can be used in binary options trading:

Trend and volumes in binary options

As you can see, the growth is accompanied by increased volumes and during pullbacks, activity in the market does not subside, as new traders buy additional assets or, on the contrary, “dump” them. But if we talk about the most correct entry points during a growing market, then these will undoubtedly be corrections, since the price decreases and makes it possible to buy cheaper.

During a downtrend, the situation will be similar in most cases, and pullbacks with increased volumes can also be used for sales.

It is also worth noting that during a flat you should pay attention to volumes only in two cases:

  1. If the price approaches the border . When the price approaches the border and the volume begins to increase, this indicates that the price is likely to “bounce” from this border.
  2. In case of flat breakdown . If a breakout of a flat occurs, then you should pay attention to the volume, and if it has grown, then this is a sign that the price will most likely continue to move in the direction of the breakout.

Where to look at volumes for binary options

To begin with, it is worth saying that there are two types of volumes:

  1. Exchange (real).
  2. Teak.

Both types of volumes can be used in the analysis, but real volumes will be much more useful and informative in contrast to tick volumes, since tick volumes are constructed without taking into account real transactions.

Real volumes for binary options

There are many terminals and trading platforms that broadcast real volumes for different markets. But it’s worth saying right away that, unfortunately, there are no completely free options for obtaining volumes for any market 24/7. But partial access volumes can be used on the TradingView trading platform :

Volumes on the TradingView trading platform

On the free TradingView platform, you can easily use historical volumes, but in real time, quotes are delayed by 10 minutes, and therefore you cannot see the data that appears right now. But this only affects small time frames (M1-M15), and for hourly charts 10 minutes can very rarely play any role and therefore you can carry out volumetric analysis even with a free subscription. If desired, anyone can purchase a paid subscription and receive data from any world exchange in real time for any charts, including seconds.

Tick ​​volumes for binary options

You can also use tick volumes, which are available both on the live chart on our website and in each terminal, including MetaTrader 4 :

Tick ​​volumes for binary options in MT4

The volume indicator in MT4 allows you to see tick volumes, which are not real and are built by the number of price ticks, but they can also be used in trading if you study all the nuances. In addition to the standard volume indicator for binary options in MetaTrader 4, you can also use a modified volume indicator Better Volume :

Better Volume indicator

There are also many other indicators for binary options that can use their own algorithms for calculating tick volumes.

If we compare real and tick volumes, we can see that in most cases they are very similar:

Real and tick volumes for binary options

In the image above, almost every increase in tick volume differs slightly from the real one, and it is precisely such “flashes” that are needed for analysis, since it makes no sense to analyze the price for each bar in a row.

How to trade binary options using volumes

You can use volumes in binary options in various ways and it will take a lot of time to study such analysis, but there are also simple ways that have already been discussed earlier.

It is worth noting that currency pairs do not have real volumes, so currency futures can be used for them and the Euro futures (6E) will be used for examples.

Trading volumes in binary options from borders

If trading is carried out in a flat or simply from the borders of certain levels, then you can observe the volumes at the moment the price approaches the border:

Examples of trading with volumes in binary options

As you can see in the image above, volumes increase sharply when the price is at a level, which means that activity appears and traders begin to buy or sell depending on the level.

Trading volumes in binary options with the Absorption pattern

Volumes also go well with candlestick patterns , one of which is called “Absorption”. This pattern is characterized by the fact that the new candle must completely cover the range of the previous candle, and if this is all supported by volumes, then the strength of the pattern increases:

Absorption and volumes in binary options

And as you can see, after the “bearish engulfing” the price moved in the direction of the pattern.

Conclusion

As it now becomes clear, volumes in binary options can also bring profit if used correctly. But you should understand that before trading using volumes, you should definitely study them by trading on a demo account , how they work, and only after that try to make real transactions using them.

Also, do not forget that in any strategy you must adhere to the rules of money management and risk management , as this will help protect your deposit from losing even over a long unprofitable distance.

PO

See also:

Psychology in trading - what does a beginner need to know?

How to correctly determine the trend in the market?

Pros and cons of trading binary options

Do you make money on binary options?

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Option Bull
Option Bull
Объемы в моей практике встречались лишь тогда, когда в новостях объявляли линии, на которых стоят ордера в верх, или низ. И в зависимости от новости они либо пролетались со свистом, либо цена отражалась от них.
Трейдер БО, а еще с помощью объемов очень удобно отслеживать и подтверждать развороты тренда. Иногда это бывает полезнее любых осцилляторов.
24 June 2024
Answer
Alexey
Объемы в трейдинге играют важную роль, но к сожалению на отс объемы проследить невозможно(
17 November 2023
Answer
Богдан
Богдан
Большое спасибо за информативную статью!
14 April 2023
Answer
tirant
tirant
На всех инструментах можно торговать на объемах. Тут нет никакого эксклюзива. Везде присутствует определённое количество ордеров на определённых уровнях.
14 April 2023
Answer
Трейдер БО
Трейдер БО
Объемы в моей практике встречались лишь тогда, когда в новостях объявляли линии, на которых стоят ордера в верх, или низ. И в зависимости от новости они либо пролетались со свистом, либо цена отражалась от них.
14 April 2023
Answer
Руслан
Руслан
Я думаю, что использование объемов может быть полезным в торговле бинарными опционами. Но как правильно их использовать?
Option Bull, да, объемы могут помочь нам определить вероятность успеха сделки. Я обычно использую объемы для подтверждения сигналов своих торговых стратегий.
13 April 2023
Answer
Option Bull
Option Bull
Я думаю, что использование объемов может быть полезным в торговле бинарными опционами. Но как правильно их использовать?
13 April 2023
Answer
Option Bull
Option Bull
Я думаю, что использование объемов может быть полезным в торговле бинарными опционами. Но как правильно их использовать?
Option Bull, да, объемы могут помочь нам определить вероятность успеха сделки. Я обычно использую объемы для подтверждения сигналов своих торговых стратегий.
Руслан, интересно, еще бы понимать как правильно определяется оптимальный объем для каждой сделки)
13 April 2023
Answer
CALL
CALL
интересно, не думал даже об объемах никогда. но мне кажется что они для бинарных опционов тяжелые для понимания
21 July 2020
Answer
Камиль
Объемы - хорошая штука, но их надо изучать чтобы понимать когда стоит торговать, а когда нет...
21 July 2020
Answer
Генчик
Генчик
спасибо, вдохновился теперь поизучать объемы, почитаю на днях статьи и посмотрю вебинары, может научусь тоже)
21 July 2020
Answer
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