The strategy of "Pinocchio" is a kind of universal as it is suitable not only for beginners but also for professionals. This strategy allows you to perform technical analysis with an extremely high level of precision and at the same time is quite enough superficial knowledge. Trader's easy enough to find the necessary transactions on the basis of the schedule and open them (more about binary options visit The Binary Best).
At the core of this strategy is the simplest setup Ping-bar which often can be found in the chart. In essence this is a turning setup. Thanks to him investors can predict the market movements and reversals in the future.
It should be noted that this strategy is excellent for any of the underlying assets or time periods. This model must necessarily be formed at extreme graphics. Only there it will really make a difference.
By itself the pattern includes three candles. And that which is in the middle that is the second is the key. This candle is called the Pinocchio nose. So many know her like a hammer or a shooting star. The pattern is called Pinocchio due to the fact that it is something like the hero of Italian tales. In the middle there is a long nose and there are two eyes on the sides.
Pinocchio strategy for binary options has long been used by many investors in their work. But in all that time it has remained almost unchanged. Of course this is not the Holy Grail but something strong enough.
In principle in itself the appearance of the graph of such a figure like a hammer or inverted star is already indicative of market sentiment. Already only with the appearance of this model we can expect that the market is ready to reverse. To work with this strategy it is recommended in small time intervals. At such time frames even a slight fluctuation of prices can give a good profit. It all depends on what kind of trader chooses option.
Purchase Call option will be available when in the chart there was a downward trend which occurred after the formation of the figure Ping bar. At the same time the nose of the figure is to look straight down. To signal to buy a call option was confirmed it is necessary to wait until the next candle will go beyond Pin-up bar. Only then investor can enter the market.
As for the put option it is possible to buy under the following conditions: in the chart pin bar should appear with the nose pointing upwards. Candle which is formed after the pin bar must be completely beyond it in a downward direction. Only then you can buy a put option. This is a key moment for trade entry.
The more ideal model would be the better strategy Pinocchio for binary options work. The body should be as short as possible and the shadow should have the maximum length. In this case a pattern is close to the ideal. In addition to use one or the other is not very bright and distinct pattern it is necessary to look at the chart or rather the history of how the markets behaved after their formation.
Pinocchio strategy for binary options is quite simple but at the same time is an effective method in the financial markets. This strategy may use even beginners. Especially since it does not involve the use of certain knowledge. The main thing is to watch, to strictly adhere to the requirements of forming, and go only after signaling described in our paper. After all there are situations where the signal cannot complete the formation. Then development can go have a different scenario.
Pinocchio's strategy may be an additional strategy, because it does not always have the opportunity to sit at the monitor and catch pin-bars. However, if you encounter such an opportunity - do not miss the chance to earn.