[Highly Profitable Trading Strategy with VuManChu Cipher B]-Steemit Crypto Academy | S5W6 | Homework Post for @reddileep

VUMANCHU CIPHER B INDICATOR

The VuManChu Cipher B is a mixture of various indicators for predicting market trading direction. Using multiple indicators can choke charts, making it difficult for traders to get an accurate read on bullish and bearish market patterns. VuManChu Cipher B is a chart that combines RSI, Market Momentum, Market Volume, and Money Flow to provide more efficient and accurate trading signals to traders.

The VuManChu Cipher B indication is based on the market cipher B indicator, but with certain tweaks. The indicator is available for usage through a public library script produced by VuManChu, as well as on the Tradingview platform for free.

Traders can use this combination to find good trade signals. Despite the fact that the indicator is deemed sophisticated due to its numerous oscillating lines, it is quite readable and understandable.

The cumulative volume flow (inflow and outflow) is represented by two lines in the VuManChu Cipher B indicator, which oscillate within the asset's wave trend. The wave trend has a dot system (red and green) signal that appears after a crossover and indicates which side of the market is in charge of price, with green representing the buyer and red representing the selling.

The VuManChu Cipher B indicator, when used in conjunction with the developing price action, can validate the directional movement of price. This corresponds to the principles of demand and supply, in which buying pressure creates demand, forcing the asset's price to rise, while selling pressure creates surplus supply, forcing the asset's price to fall.

CUSTOMIZING THE VUMANCHU CIPHER B INDICATOR TO YOUR PREFERENCE

To be able to customize the indicator to suit your taste, you must first add the indicator to your chart, so for this section I will show us how to add the indicator to our chart and then explain how we can modify the settings of this indicator.
For this illustration I will be making use of the tradingview website www.tradingview.com

1.Visit the tradingview website and access any chart of your choice

2.Click on the indicator icon (Fx) at the top of your system interface as shown in the image below

3.A search section which the list of indicators will be displayed, search for the Vumanchu Cipher B indicator by typing the name in the search bar

4.Once the above procedures are completed then you have successfully added the indicator to your chart

TO MODIFY ITS SETTINGS

To modify the settings of the Vumanchu Cipher B indicator, you click on the little settings icon attached to the indicator name on the chart as shown in the image below

INPUTS

To create a simple, less clustered indicator, eliminate some of the indicator settings from the displayed inputs tab. To begin, uncheck the boxes for "Show WT Regular Divergences" and "Show 2nd WT Regular Divergences" at the bottom of the page. This is due to the fact that the professor's trading method does not use divergences, but the WT Regular Divergence can be used in other trading systems.

Scroll down and uncheck the Show Stochastic RSI option, as it isn't important to this trading method.

THE STYLE

The color, thickness, and precision of the VuManChu Cipher indication curve can be set on the Style tab. To begin, go to this menu's VWAP box and uncheck it. The VMAP (Volume-Weighted Average Price) is a volume-weighted indicator that calculates and shows the weighted average price. This indicator has no bearing on the current trading strategy.

Remove the MFI Bar Colors indicator from the Style tab's next setting. This is a money flow index version that uses different colored bars to highlight inflow and outflow volume. This indicator has no bearing on the current trading strategy.

On the chart, we now have indicators that are more clear and simple. Due to this, a trading strategy for identifying bullish and bearish trends is simple to implement.

THE VUMANCHU CIPHER B INDICATOR'S APPEARANCE

The wave trend has a general blue color, and it may be divided into two types of wave trend indicators: light blue and dark blue. These blue waves indicate overbought and oversold market conditions, as well as divergent price activity.

The blue line crossing is illustrated by dots (either red or green) in the image below, representing the price control side of the market.

The Money Flow Index, which is cloudy in nature, moves on the zero line. The cloud is visible in two colors: red and green. When money is flowing out of an asset due to being oversold, the cloud turns red. When money is flooding into an asset because it is overbought, it turns green.

COMBINING THE VUMANCHU CIPHER B INDICATOR AND THE EXPONENTIAL MOVING AVERAGE

To filter out distorted or erroneous signals created by the VuManChu Cipher B indicator, it is paired with exponential morning averages. Multiple indicators confirm the trading bias, which considerably increases the trade signal quality. The VuManChu Cipher B indicator will be coupled with two exponential moving averages (EMA) with periods of 55 and 200 for this demonstration.

When the 55 EMA crosses over the 200 EMA, it is considered a buy trade signal, indicating that buyers are in control of the price. When the 200 EMA crosses over the 55 EMA, it is considered a sell trade signal, indicating that the price is being controlled by sellers. The EMAs can now be used in conjunction with the VuManChu Cipher B indicator to discover potential trade signals.

After the configuration is complete, the cryptocurrency market chart displayed on the main page using a combination of VuManChu Cipher B and EMA indicator looks better and complements the trading strategy.

FOR SUCCESSFUL TRADING, HOW TO USE THE VUMANCHU CIPHER B INDICATOR

1.BUY SIGNAL

The 55 EMA must cross above the 200 EMA in order for the EMA bullish trade signal to be confirmed in a bullish scenario. The VuManChu Cipher B indicator must confirm the trade signal now that the criterion has been satisfied. The volume flow (MFI) on the VuManChu Cipher B indicator must be green, indicating a capital influx into the asset. This follows the demand and supply rules, as inflow produces demand, forcing the asset's price to trade upwards.

Finally, on the VuManChu Cipher B indicator's trend wave, a green dot should be placed at the intersection of the dark blue and light blue lines, indicating that the current trend is bullish. This means that during the defined time frame, purchasers have price control.

2.SELL SIGNAL

If the 200 EMA crosses above the 55 EMA in a bearish scenario, the EMA bearish trade signal is confirmed. The VuManChu Cipher B indicator must confirm the trade signal now that the criterion has been satisfied.

The volume flow (MFI) on the VuManChu Cipher B indicator must be red, indicating a capital outflow from the asset. This follows demand and supply concepts, as outflow produces supply, forcing the asset's price to trade downward. Finally, on the VuManChu Cipher B indicator's trend wave, a red dot should be placed at the intersection of the dark blue and light blue lines, indicating that the current trend is bearish. This means that within the time frame provided, sellers have price control.

CONCLUSION

The VuManChuCipher B indicator aids traders in identifying market trends and predicting market movement. The traders determine the optimum entry and exit points before setting up the deal. This indicator can also be used to determine whether the market is overbought or oversold. To validate a bullish or bearish trend, certain parameters for the bullish and bearish seasons must be met.

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