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The Pinocchio method used together the system of binary options allows even inexperienced traders to make a profit. You need to wait until you see the third bar. The Pinocchio method is regarded as a simple method, and no doubts, you can not difficult master it. When the pattern just starts to form, a trend is about to reverse. To the left of the nose, there is a left eye. You can see the following picture on the live chart and earn on it. The longer the nose and the shorter the body is, the more reliable the figure is. If the length of the wick is several times more than the body, this is the optimum entry point. You have to open and close a trade at the level of a previous candlestick. The nose to eye ratio is very important in this pattern. The point of the method is to figure out the moment when a trend starts reversal at one of its highs. The Pinocchio pattern consists of three bars or candles on a chart.

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Any color can be chosen to create any candlestick, but regardless of the color used to outline an unfilled bar, it is always used to represent a period where the price rose. This bar shows that the asset traded downward for the period and that the bears are in control. How do I build a profitable method when spotting a Rising Three Methods pattern? Explore the difference between bar and candlestick charts. For more on this technique, see The Art of Candlestick Charting. Candlestick charts have been used in Western trading for many years and are a very popular method of plotting the price action of a given security over time. This type of candle shows that buyers were in control of the security because the price was able to rise over the period, but this does not provide enough information to predict what will happen next. Remember that each bar can represent a minute, day, week, or even month, but the chosen time frame does not influence the color of the candle because a hollow bar will always be created when the close is higher than the open.

How do I Implement a forex method when spotting a Morning Star pattern? In the figure above, we chose blue. How do I build a profitable method when spotting an Evening Star pattern?