Pinocchio Strategy

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This strategy is worked on a specific type of candle. A Pinocchio bar aka Pin bar had a long wick nose and a small body. The wick part becomes longer as a price goes in one direction and then retraces. Based on the length of the wick, the probability of the price going in the opposite direction becomes higher, proving binary options pinocchio strategy the original trend is false the lie. When you look at the longer wick, it means that the sellers the bears or Put traders took the price down the lowest point of binary options pinocchio strategy wick but the buyers bulls or Call traders entered the market and the price then increased.

This shows on the binary options pinocchio strategy as a small body and a long lower wick. This often means that the price will continue rising as this type of candle shows rejection of the previous trend. When looking at a bullish Pinocchio bar, the opposite of the above applies. The simplest form of this strategy would be buying a Put on the up wick and buying a Call on the down wickbut to get better results you need to complicate the strategy a little.

Combine this strategy with technical indicators and price action will give you a little more security on your signals. Add in resistance and support lines, trend lines, oversold and overbought levels, confluence and divergence and you are likely to get the right results. You would need to binary options pinocchio strategy by being able to identify the Pinocchio type candle and then start the homework to look at trends, ranges and so forth to see binary options pinocchio strategy to enter.

This is not the simplest strategy to use as a beginner as you cannot simply trade when you see the Pin bar and if you are not experienced in gauging binary options pinocchio strategy market you may not be successful with your trade.

There are a number of factors that can affect the trend and it is better to have clear confirmation after noting the Pinocchio bar before entering a trade. This strategy does however work well in a trending market if you only trade with the trend and in ranging markets.

It is an extremely accurate and reliable strategy as the Pin bar clearly shows the behaviour of the market participants.

This bar also allows you to identify false breaks binary options pinocchio strategy a trend and allows you to avoid the inevitable trend change indicted by the Pinocchio bar. To ensure a good trade it is recommended to watch for a number of other factors to give a good binary options pinocchio strategy and not to just trade based on the Pin bar alone.

This strategy is better when used for forex trading but can also be used successfully for binary option trading with some minor adaptions and the use of a few extra indicators. Your email address will not be published. How to use our strategies from Best-Binary-Options-Strategy.

Pinocchio Binary Options Trading Strategy. Leave a Reply Cancel reply Your email address will not be published. Strategy categories 15 minute strategies 2 minute strategies 30 minute strategies 5 minute strategies 60 second strategies All Binary Options Strategies Hour strategies News Other strategies Technical Analysis Strategy.

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In contrast to other binary options strategies Pinocchio can be easily used without any specific professional skills and knowledge of fundamental analysis. It is appropriate for commodity futures and stocks as well as for Forex currency pairs trading.

To trade Pinocchio patterns we recommend you opening an account at a regulated binary broker which offers demo trading. Pinocchio strategy for binary options can be used with different types of charts.

Those who are more comfortable with the bars should look for a model consisting of three bars. Those who prefer Japanese candles will be looking for a model that consists of a three candles. The end of the bar, which is located on the left should occur at the opening of the middle of the bar, so the middle bar shall be closed at the opening of the right bar.

In addition, the one in the middle must have a sufficiently long shadow, which greatly extends beyond the right and left bars. In order to understand how to use the strategy, it is necessary to understand Pinocchio pattern, which is located in the middle, and how it should look like.

Primarily it should be noted that the Pinocchio pattern has a distinctive long shadow. Sometimes in trading literature, this shadow can be called a spike. The spike or shade must be long enough and at the same time directed in the opposite direction from the current motion. It is important to note that the longer the spike is, the more likely the strategy will work out.

On the left side of the pattern should be located the left eye of Pinocchio. The nose and the eyes should be combined in a special way. An ideal pattern can be recognized if the spike goes far beyond the previous bar or candle and the body does not go beyond it. But in order for the signal to be as clear as possible, it is better to wait for the ideal Pinocchio pattern. There is another important point. Binary option purchase is carried out when there is evidence of the last candle from the combination.

When it comes to a situation with a rising trend, the body of the third bar needs to move beyond the body of the second. Only then we can say that the pattern is confirmed. If the trend is moving downwards, the bear bar on the right of the Pinocchio pattern should cross the body of the candle from the top down. Once you identify the Pinocchio pattern then it will be easy for you to take a decision for Call or Put option.

Skip to main content. Pinocchio binary options strategy You are here Home. How to identify Pinocchio pattern? The spike of the hammer must exceed the length of its body several times.

How to trade Pinocchio pattern? In this situation, you can buy a Call binary option. This will indicate that a bearish market trend will follow and you can buy a Put option. Tue, 06 Oct Log in or register to post comments.