Let's talk about the “Pinocchio” figure

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Let's talk about the “Pinocchio” figure.  What is its essence, how to find it, and how will it help us in trading?

“Pinocchio” is not uncommon figure.  Any trader, if he is actively immersed in the process, has met with her. And met many times. But the value lies not only in defining this pattern, but also in using it wisely to earn money.

What does Pinocchio look like?

The signal candle in this pattern casts a long shadow. Therefore, by the way, the figure is called that.

And if you remember, when he was telling a lie, his nose was growing. So, the “nose” should be longer than the rest of the candles.

When working with this figure, you need to consider 3 candles which go in a row. It is important that the middle one of them should have the largest shadow. At the same time, the minimums of the side candles should not go beyond the minimum average.