Pinocchio Binary Options Strategy
Learning the various strategies available and finding the one, or more, that best suits you are essential if you wish to become a success in this challenging business. There are many different options and more being devised all the time. One strategy which is worth looking at in detail and considering is the popular Pinocchio binary options strategy.
To utilize this strategy you must firstly be familiar with the concept of candle charts. A quick study will ensure you are aware of the multitude of information which can be accessed through a candle. It includes the maximum and minimum price for a period as well as the starting price, finishing price and the state of the market. Dark candles indicate a bear market whilst a bull market can be shown through a light candle.
As soon as you have assimilated this information and practiced reading a few candles you will realize that it is very easy and very informative.
As you look through the various charts you will locate some which have extremely large wicks. In comparison their bodies will be much smaller than average. These candles are referred to as Pinocchio’s and form part of a Pinocchio binary options strategy. Just like the puppet experienced nose growth when telling a lie, so do these wicks. An extended wick indicates the market is about to change direction. A downward wick tells you to trade up and an upward wick to trade down.
Applying the Pinocchio Binary Options Strategy
This approach has proved to be very effective for beginners as there is no need to have an extensive knowledge of the market. It is not even necessary to understand the range of analytical tools; you will only need to look at the candle charts.
As an added bonus it is possible to trade effectively in currencies as well as the binary trades; the Pinocchio binary options strategy is easily visible on almost any price chart making it an invaluable tool.
Most Important Factor To Ensure Effectivness Of Your Pinocchio Binary Options Strategy
Ensure you apply the Pinocchio binary options strategy effectively you must look at charts which display more than one candle. It is also important to confirm any candle you use is providing a strong indicator of the state of the market; it must clearly indicate a bull or bear market. This ensures the technique will be effective and provides you with guidance regarding which way to trade.
As with any type of trading you must be vigilant for a signal which will confirm your intention to trade. Any candle with a long wick or the appearance of a long shadow which goes in the opposite direction to the current price movement, indicates you can start trading.
However, before you commit it is advisable to wait for a third candle indicating the same information. This is the one that will tell you which direction your trade should head in. In effect it is the shadow of the first candle and provides the confirmation that you have spotted a viable opportunity.
It is necessary to stick to these guidelines to ensure you have the best chance of trading successfully. However, it is also essential to remember that no technique is perfect; there will be some trades which are successful and some which are not. Perseverance and patience is the key to generating consistent profits.