Tuesday, August 25th, 2015 Tim Lanoue
Welcome back everyone, today I will review my powerful Binary Options Pinocchio Strategy! Perhaps one of the best advantages about this binary options trading strategy would be that it requires the use of zero technical indicators unlike most strategies today that rely on the use of questionable technical indicators.
Ideally, all you need in order to properly apply this strategy would be access to a charting solution such as MetaTrader4 (MT4), MetaTrader5 (MT5) or thinkorswim (TOS) along with having a binary options broker account. Moving forward, as you can insinuate for yourself practice beforehand will better increase your probability of success with this trading strategy since you develop a taste and feel for what the correct signals appear like. Now the name of this trading strategy is actually quite unique and has a little story behind it.
You see the story behind the Pinocchio strategy would be that the signal (a single Japanese candlestick that possesses a small body with a long wick above the body) exhibits the same behavior as the beloved Pinocchio cartoon that we are all so familiar with. You see, when Pinocchio is lying his nose continues to grow which in this case ends up being our upper wick. Our upper wick, which represents Pinocchio’s nose, indicates to us that the buyers and sellers are having difficulty in establishing control over the asset. This long upper wick indicates to us that a bearish reversal will more than likely occur therefore once we see this formation we need to place a PUT investment that corresponds appropriately with your time frame. These formations are known as Pin Bar formations and for those of you who are questioning what Pin Bar candlesticks appear like please refer to the picture below.
Now in general when we are applying this strategy we are looking for Pin Bar candlestick formations but there are also one other candlestick formation that we can look for when using the Pinocchio trading strategy which would be the Shooting Star candlestick formation. Now for those of you who are not familiar with the Shooting Star candlestick it is a single candlestick that indicates to us that a bearish reversal will more than likely occur. Before you can properly identify a proper Shooting Star candlestick you need to make sure that the candlestick is bearish, occurs in a bullish trend and is characterized by a wick that is at least 2 to 3 times the length of the body. In the pictures below you can see examples of just how powerful and accurate the Shooting Star candlestick can be.
Now that you have a better understanding on how to identify trading signals let’s talk more about the actual implementation of this trading strategy. You see unlike most binary option trading strategies that require you to invest solely during a particular time of day, the Pinocchio trading strategy allows investors to invest during any time of the day that they deem necessary. In addition, the principles behind this trading strategy are based upon the creation of order flow, which happens to be the direct derivative of Price Action, indicating to us that we can apply the same perimeters for the Pinocchio trading strategy that we do with Price Action Trading Strategy. Simple meaning that we can invest with any time frame and expiry time that we think would most likely result in success. For those of you who are unfamiliar with Price Action Trading Strategy but would like to learn more please feel free to read my Price Action Trading Strategy.
Possessing a basic understanding about the fundamentals of technical analysis along with simple Japanese candlesticks can greatly increase your success as a binary options investor. The Pinocchio trading strategy is simplistic yet highly effective and can be applied by traders of all experience levels. Stick with a time frame and make sure to keep your expiry time in proportion with your desired time frame. As always if you guys have any questions regarding this binary options trading strategy please feel free to leave a comment below and I will answer them all for you! Lastly, for those of you who were intrigued and felt that this trading strategy was beneficial please feel free to become part of our Facebook Signals Group. We not only are we the most reputable and reliable binary options Facebook group but we are also over 2,200 members strong!