The Best Binary Options Pinocchio Trading Pattern!

By | August 25, 2015

Tuesday, August 25th, 2015 Tim Lanoue 

Welcome back everyone, today I will review my powerful Binary Options Pinocchio Trading Pattern! Perhaps one of the best advantages about this binary options trading pattern would be that it requires the use of zero technical indicators unlike most trading patterns today that rely on the use of questionable technical indicators.

Ideally, all you need in order to properly apply this trading pattern 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 pattern since you develop a taste and feel for what the correct signals appear like. Now the name of this trading pattern is actually quite unique and has a little story behind it.

You see the story behind the Pinocchio trading pattern 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 pattern 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 pattern 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 pattern. You see unlike most binary option trading pattern that require you to invest solely during a particular time of day, the Pinocchio trading pattern allows investors to invest during any time of the day that they deem necessary.  In addition, the principles behind this trading pattern 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 pattern that we do with Price Action Trading Pattern. 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 Pattern but would like to learn more please feel free to read my Price Action Trading Pattern.

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 pattern 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 pattern 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 pattern 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!

14 thoughts on “The Best Binary Options Pinocchio Trading Pattern!

  1. Mohd Najib Mohd Amin

    well done tim!’s simple and clear to understand..frankly,i never knew about this Pinocchio strategy before this,sure i will apply after this..thanks for sharing bro..really appreciate your amazing effort..

  2. Willy

    Hey thank you so much for this article and I appreciate the hard work. This is the kind of stuff that is great because you are sharing real strategies instead of just spreading scams. As for the strategy it seems pretty sound. Now it’s just a matter of applying it and giving it a try.

    The way to really know whether stuff like this works is to look at the data, then give it some experience of your own. How much would you usually invest in this type of strategy if you were a total newb just trying to figure it out?

  3. Pete

    I have used candlesticks while trading the equities market. What I’ve been seeing with your product is currencies and commodities. Does your broker (?) allow binary equity trades. If so, are there a limited selection of stocks?

  4. Tim Lanoue

    Thank you very much Dipsinh and Beth!
    So happy to hear your great results Marc, keep up the good work! 😀

  5. marc barling

    just spend 5 mins reading this and understanding it,then 45 mins doing it 3 trades placed 3 ITM thanks very good strategy

  6. Beth

    Thanks Tim for a great explanation. Just to clarify time frames & expiry times – I notice you have are using a 5 min chart & suggest 5-10min expiry. Does this mean a 15 min chart should use a 15-30min expiry & 30min chart, use a 30min – 1hr expiry. Thanks for your continuing education & Mike for posting.

  7. Dipsinh

    Dear Sir,

    Great information.
    Thanks for your knowledge sharing approach which is almost difficult in today’s competitive world.
    It’s really helpful for newbie like me.

  8. Tim Lanoue

    Thank you very much for your support guys! Much more content to come! 😀

  9. Bryan Booker

    Tim, you consistently do an excellent job of breaking down strategies and making them very easy to understand!! I look forward to trying this out and to learning from more of your articles. Keep up the great work!

  10. Bill Boren

    Thanks for your response! I will demo it tomorrow along with the other strategy from Ashraf!
    You do a great job explaining what is going on!

    Any more Candle Stick Training coming up?

  11. Luc Luc

    Thank you for sharing this. I’ve just revised my MT4 – just a 3 pairs of currencies. One day back – and my result is, when analysed properly, this strategy can give up to 80% IMT rate, or even more. It’s clever, brillant, and gives lot’s of opportunities.

  12. Tim Lanoue

    Hey Don,

    Thank you very much for your kind words, it means a lot to know that people appreciate our hard work! 😀

    Hey Bill,

    Yes that is correct, it is just because Shooting Star’s are classified as a Pin Bar type of candlestick therefore we just include it. Traditionally, Shooting Star candlesticks are much more effective than regular Pin Bar candlesticks that appear but for ease of understanding this trading strategy I felt that it was essential to know that Shooting Star candlesticks classify underneath Pin Bar candlesticks as well. Remember, both Pin Bar and Shooting Star are responsible for bearish reversals due to the buyers not being able to keep control (hint the long upper shadow) indicating to us that the sellers will more than likely take control!

    Hope this helped you out!

    Have a great day guys!!

  13. Bill Boren

    So using a shooting star to commit to a PUT is ONLY done when it has the correct dimensions, is bearish (ie red) and MUST occur during a bullish (green) trend. Whereas in the pinochio strategy the candle can be red or green and occur in a bullish or bearish market!
    The two are nearly identical! Why such a big difference in how they are used?

  14. Don Murray

    Great strategy and easy to understand. Thanks for the effort you give to us to help us all with our daily struggles, all this information is very deeply appreciated.


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