Binary options trading tactic called: “Pinocchio”

Ted Capwell Updated:

This strategy is suitable for many traders, as it binds in itself many different details of trading binary options. This strategy is suitable for beginners as well. Since trading with its help will be based on the recognition of a technical figure. Especially suitable for those traders who are accustomed to use in the analysis such a tool as Japanese candles. The figure that will need to be recognized has several names: “Pinocchio Bar”, “Pin Bar”, “Falling Star”.

Binary options pinocchio trading strategy

The strategy of trade is called precisely through the external similarity with the nose of Pinocchio. The figure itself consists of a body and a wick. As a rule, the wick is longer in relation to the body. The body itself is short. The lengthening of the wick occurs as the market tries to deceive us about the choice of the direction of its movement. If you track the movement of prices in a new zone and then a sharp reversal in the opposite direction, this phenomenon will form the so-called Pinocchio Bar. The signal strength in this case is proportional to the length of the wick. A wick can take two directions.

The first is up. The second is down. In the first case, we have a signal to place the Put option, in the second case it will preemptively place the call option.
The pin bar itself is quite easy to determine. As we said before this strategy is suitable for beginning traders. But, it is better to use it in combination with other indicators. Analysis of areas of support and resistance and others will significantly increase your chances of a successful transaction. To get a good result and to protect yourself as much as possible from the loss of your investments, we recommend that you summarize all your knowledge and use them as a single whole. Since no strategy can guarantee you a 100% victory.