Trading according to the “Pinocchio” strategy
Unlike other binary options strategies, Pinocchio can be used without professional trading skills and knowledge of fundamental analysis. It is suitable for trading futures on commodities and securities, as well as for currency pairs on Forex and binary options.
To successfully work with the Pinocchio strategy, we recommend opening an account with a licensed binary options broker. In the Pinocchio strategy, it is allowed to trade with two different types of charts.
How to identify “Pinocchio”?
The main thing in the strategy is to be able to correctly identify the “Pinocchio” figure: the “Pinocchio” figure consists of three candles. The middle candle, from which a long shadow departs, resembles a nose. If the trend is up, the nose is pointing up, and in a downtrend, it looks down. The two candles on the sides are called the eyes:
The end of the column on the left should be at the opening of the middle of the column, so the middle column should be closed at the opening of the right column. One column in the middle should have a long enough shadow that extends beyond the right and left columns.
The figure has a long shadow, sometimes in the literature on trading it is called a spike. It must be long enough and at the same time opposite to the flow movement.
The longer the spike, the more likely it is that the strategy will work. On the left side of the specimen should be the left eye of the “Pinocchio”. An ideal pattern is formed when the spike goes beyond the previous column or candlestick, and the body does not go beyond it.
To make the signal as bright as possible, it is best to wait for the perfect Pinocchio sample. The spike should exceed the length of the body several times.
Binary Options Trading Strategies
How to trade with the Pinocchio strategy?
The purchase of a binary option is carried out when the candle is the last in the combination:
When it comes to an uptrend, the body of the third column should move beyond the body of the second column. And only in that case we can say that the sample is confirmed. If such a situation arises, you can purchase a Call option:
If the trend moves downwards, the bearish column of the right Pinocchio pattern should cross the body of the candle from top to bottom, which will indicate a downward direction of the market. You can buy a Put option. Once you have identified the Pinocchio pattern, it will be much easier to decide which option to purchase, Call or Put.
Strategy “Pinocchio” at the broker Olympus Trade
In order for the work on the Pinocchio strategy to be comfortable and effective, we recommend using the trading platform of a trusted broker Olympus Trade. The terminal offers the necessary functionality for trading: a personal account with transaction analytics, indicators, a choice of options and expiration, the ability to test strategies, work with market reviews and an economic calendar.
Read up-to-date reviews about the broker Olympus Trade, as well as ask questions to professional traders here. You can see what the terminal workspace looks like in the image below.
A detailed review of the Olymp Trade broker is here.
Go to the official website of the broker Olymp Trade here.
In order to buy a
CALL
option in the Olymp Trade trading terminal, follow these steps by going to the olymptrade.com website and preparing an option by specifying:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: UP
- Click the “buy” button and follow the results.
In order to buy a
PCI
option in the Olymp Trade trading terminal, follow these steps by going to the olymptrade.com website and preparing an option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: DOWN
- Click the “buy” button and follow the results.
Ask a question about Olympus Trade
Bonuses of the broker Olymp Trade
Working with Olymp Trade is profitable, the broker offers permanent promotions for its users. Thanks to bonuses, the trader can trade even more without risking his cash capital. Now you can take advantage of the broker’s starting bonus, which will allow you to double the amount of funds on your account. The promotion applies to all newcomers to the terminal who have replenished their account within an hour after registration.
Tagged with: Binary Options Strategies Chart Models • Binary Options Strategy
