Utilizing the Ichimoku indicator, Gunbot can be set to execute trades when a complete candle surpasses the Kumo, Tenkan-Sen, or Kijun-Sen lines. You have the flexibility to determine which line should trigger buy and/or sell orders.
The Ichimoku indicator, also referred to as the Ichimoku Kinko Hyo, is a widely-used trading instrument that presents multiple data points within a single chart. Invented by Japanese journalist Goichi Hosoda during the 1930s, this technical analysis tool is meant to provide an all-encompassing perspective on possible price movements.
Comprising five lines, the Ichimoku indicator offers various information, such as support and resistance levels, trend orientation, and momentum intensity. The five lines include: Tenkan-Sen (conversion line), Kijun-Sen (base line), Chikou Span (lagging line), Senkou Span A (leading span A), and Senkou Span B (leading span B). Ultimately, the Ichimoku indicator strives to assist traders in recognizing trends, momentum, and potential points for entering and exiting trades.
Working with Ichimoku
Gunbot initiates a single position—either long or short—and closes it when the target has been achieved. If the stop is activated before a trade concludes profitably, Gunbot places a stop order at a loss. Upon closing a position, Gunbot seeks to establish a new long or short position without augmenting existing open ones.
For this strategy, it's advised to employ an additional momentum indicator to verify long and short entry points.