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

in hive-108451 •  9 months ago 

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This is a very interesting lecture on the VuManChu Cipher B indicator. It is beneficial for those traders who cannot afford to purchase premium indicators. I have learned a lot of things about the VuManChu Cipher B indicator. Now I try to explain all the information about this indicator. I hope, it will help you to understand this indicator.

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Question no. 1

Define VuManChu Cipher B Indicator in your own words.


VuManChu Cipher B Indicator is a technical analyses tool that is used in crypto trading. VuManChu Cipher B is comprised of multiple indicators. There are many indicators involved, that is why it is a color full indicator. It is used to determine the current market condition, buy and sell signals. It is also used for confirming the signals that are produced by each indicator in VuManChu Cipher B.

There are many indicators involved, we can say that the VuManChu Cipher B indicator is an all-in-one indicator. Indicator involved is Wave Trend, Relative Strength Index, Stochastic RSI, Money Flow Index, Market movement, and Market volume. In the general case, we are not able to use more than three indicators at once.

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VuManChu Cipher B Indicator || TradingView

If we want to use more than one indicator then we need to purchase a premium version. VuManChu Cipher B indicator is similar to the Market Cipher indicator. It is a premium indicator that every trader can’t afford. But we can use multiple indicators at once with the help of the VuManChu Cipher B indicator.

In the above figure, you can see that how VuManChu Cipher B indicator looks like. Collectively it is quite difficult to understand. VuManChu Cipher B is a bit complex than another indicator. Many indicators are merged with each other. We cannot figure out the required result from this. So, we can customize the indicator according to our choice. Customization of this indicator is discussed in the next question.

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Question no 2

How to customize the VuManChu Cipher B Indicator according to our requirements? (Screenshots required)


First, of all, we need to add the indicator on the chart. To add the chart, we need to visit the charting platform. So, TradingView.com is the best charting platform that we use to add the indicator on the chart. First, we need to open the chart of a particular asset. Then we need to add the indicator on the chart. To add the indicator to the chart, you need to do the following procedure.

  • Go to the TradingView.com site and open the charts.
  • Next, click on the fx Indicator sign at the top of the chart.
  • Then, write the name of Indicator ** VuManChu Cipher B**.
  • After that, click on the VuManChu Cipher B + Divergence result as shown in the figure.

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Adding Process || TradingView

In the following, figure, you can see that the VuManChu Cipher B indicator is added. You can also notice that it is a bit complex indicator than other indicators. There are many indicators are merge each other.

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Indicator Addede || TradingView

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How to Customize the VuManChu Cipher B Indicator?


We can easily customize the VuManChu Cipher B according to our choice. There are lot of settings that we can change. Because are many indicators involved in the VuManChu Cipher B indicator. We cannot easily understand the default VuManChu Cipher B indicator. So, we need to customize the indicator according to our choice.

In customization, we can select the indicator that we won't see and remove those indicators that are not necessary. Further, we will see the settings of the indicator. Now to customize the indicator you need to click on the Settings button on the indicator as you can see in the figure. There are two major settings of the indicator. One is Input setting and second is Style setting.


  • Input Setting


There are many settings involved in the Input setting due to a lot of indicators. This is because every indicator switches on and off from the input setting. In this setting, we can change the lengths of every indicator. In the figure, you can see that there are many dots, and wave trend-setting can be switched on and off by clicking the checkbox. At the bottom, we can change the length of the Wave Trend Channel.

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Input Setting || TradingView

We can remove unnecessary things that we do not want to see on the indicator. We can reduce the indicator rush by unchecking the tick. If we do not want to see the divergence on the Wave trend, then we can remove it by unchecking this. We can also switch on and off the hidden divergence and change the length of both 1st Wave Trend Bearish 2nd Wave Trend bullish Divergence.

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Input Settings || TradingView

We can also switch on and off the RSI, WT, Stochastic RSI, and other indicators that are involved in VuManChu Cipher B. We can also change the length of every indicator.

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  • Style Setting


In this setting, we can simply change the appearance style of every indicator. We can change the color of every indicator. We can change the line style flat to dotted. You can change after clicking on the color of the icon and selecting
the color. And press ok.

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Style Settings || TradingView

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Question no 3

Explain the appearance of the VuManChu Cipher B Indicator through screenshots. (You should Highlight each important part of this indicator by explaining their purpose)


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VuManChu Cipher B Indicator Look || TradingView

VuManChu Cipher B indicator is composed of many indicators. All the indicators are merged with each other. We cannot easily read every indicator. You can see in the above figure, the how VuManChu Cipher B indicator looks like. We will discuss the important indicators that are involved.


  • Wave Trend

At the first, we will talk about the Wave Trend indicator. It covers most of the area overall indicators. You can see this indicator in blue color. There are two colors in this one is a light color and another one is dark. Color. Light color is indicating the price movement in upward and downward directions.

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Wave Trend || TradingView

And dark color indicates the price reversal from the upward and downward direction. Green and Red dots are also shown in the figure. Dots show the crossover of the Up Wave trend and Down Wave Trend. The red dot indicates the sell signal and the green signal is the buy signal. Wave trend is used to determine the market trend, oversold and overbought zones.

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  • Money Flow


It is the second important indicator. This indicator is used to determine the current money flow in the market. We can determine the money flow whether the money is flowing into an asset or our asset. We can see the Money Flow indicator in the Green and Red colors.

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Money Flow || TradingView

When the color is green it indicates that the money is following into asset, on the contrary when the color is red, it indicates the money flow out of the asset. We should take an entry when color and green and avoid taking an entry when color is red.

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  • Stochastic RSI


It is also an important indicator in this indicator. You can see this indicator in light blue color. There are two lines in this indicator. When the price move in an upward direction then, Its color is light blue, and the price pullback then the color change to dark pink as you can see in the figure.

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Stochastic RSI || TradingView

This indicator is used to determine the overbought and oversold regions. Traders use this indicator to figure out the best fit buy and sell opportunity. When indicator lines are above 80 then it indicates the overbought of asset and it also sells signal. On contrary, when indicator lines are blown 20 then it indicates the oversold of asset and it is also a buy signal.

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  • Scaff TC


It is also one of them that is involved in the VuManChu Cipher B Indicator. It is one oscillating line that is used to determine the current market trend. It is working between 80 and 20. The purpose of this indicator is to determine the current market trend.

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Scaff TC || TradingView

It also shows buy and sell signals. When the line cross 80 line from top to down, it indicates the sell signal. When it crosses from the bottom to up at 20 lines as mentioned in the figure, It indicates the buy signal. It also indicates the overbought and oversold of assets.

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  • Relative Strength Index


It is also an important indicator in this indicator. You can see this indicator in pink color. It is consisting of one line as you can see in the figure. This indicator is used to determine the overbought and oversold regions. Traders use this indicator to figure out the best fit buy and sell opportunity.

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Relative Strength Index || TradingView

When indicator lines are above 70 then it indicates the overbought of asset and it also sells signal. On contrary, when indicator lines are blown 30 then it indicates the oversold of asset and it is also a buy signal.

All these indicators are involved in the VuManChu indicator. We can switch on the required indicator according to our trading style and strategy. This is really profitable indicator. We confirm the signals of every indicator and filter the false signals.
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Question no 4

Demonstrate your preparation for the Trading Strategy combining other indicators. (Instead of showing the addition of indicators to the chart, you should explain the purpose of each indicator for this trading strategy.)


I choose the Exponential Moving Average indicator to combine with VuManChu Cipher B. As we add the VuManChu Cipher B indicator to the chart, in the same we add another indicator to combine the EMA indicator with VuManChu Cipher B. To add the EMA indicator to the chart, click on the indicator button and search for Exponential Moving Average. After that Click on the Moving Average Exponential result.

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Input and Style Configuration || TradingView

I add the EMA indicator two times. Because we can confirm the signal with two EMA’s crossovers. After adding two EMA’s, we need to customize the input and style settings to make difference with each other.

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Input Configuration || TradingView

Click on the setting button on the indicator, the setting window appears. I want to set the 200 EMA length and on second, I set 55 EMA length. Next, I change the color and thickness of both EMA’s. I set 55 EMA color is blue and 200 EMA color is red. You can see the customized setting in the figures.

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Input and Style Configuration || TradingView

After that, you can see, that I combine another indicator with the VuManChu Cipher B indicator.

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Purpose of EMA Indicator


EMA indicator is a trend-based indicator that is used to determine the current trend of the market. It is also used to determine the buy and sell signal from crossover with price actions. When we use EMA twice then we can get buy and sell signals from crossovers of both EMA’s with different parameters. It is a very important indicator in trading.

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Purpose of VuManChu Cipher B Indicator


VuManChu Cipher B Indicator is a technical analyses tool that is used in crypto trading. VuManChu Cipher B is comprised of multiple indicators. There are many indicators involved, that is why it is a color full indicator. It is used to determine the current market condition, buy and sell signals. It is also used for confirming the signals that are produced by each indicator in VuManChu Cipher B.

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Question no :5

Graphically explain how to use VuManChu Cipher B Indicator for Successful Trading. (Screenshots required)


We can use VuManChu Cipher B Indicator as a successful indicator in trading. From the above learning, I will set up the both buy and sell trade on the chart. In this, I will use two or more indicators to set the trades. I will prefer to add the EMA with VuManChu Cipher B Indicator to confirm the trend and signals. I set the EMA length to 200 or 55 respectively and change the color 55 EMA to Blue and 200 EMA to red.

Buy Trade Setup


I open the chart of the BTC/USD pair. For the buy trade setup, we need to wait for EMA crossover and another buy signal that is produced by the VuManChu Cipher B Indicator by showing the green dot. If these conditions are not formed then need to wait for making these conditions.

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Buy Setup || TradingView

In the above figure, you can see that, the EMA cross. When 55 EMA crosses 200 EMA from the bottom to the upward direction then it indicates the buy signal. In the figure, the same cross is shown. At the same time, you can notice that the VuManChu Cipher B Indicator shows the Green dot. Next, we can see that the Money flow is also green that indicating the flow of money into the asset.

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Buy Trade || TradingView

In this way, all indicator confirms the buy signal so, I place a buy trade at this point when a green dot appears. You can see in the above figure; I place a buy trade just after EMA crossover and Green Dot. After that, you can see that the market is on an uptrend.

In this, we can set the buy trade setup using the VuManChu Cipher B Indicator with the conjunction of the EMA indicator. I place buy trade with proper trading management. You can see that the stop loss and take profit is also applied on the chart.

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Sell Trade Setup


I open the chart of ETH/USD pair at 4h time period. For the Sell trade setup, we need to wait for EMA crossover and another sell signal that is produced by the VuManChu Cipher B Indicator by showing the red dot. If these conditions are not satisfied then need to wait for making these conditions.

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Sell Setup || TradingView

In the above figure, you can see that, the EMA cross. When 55 EMA crosses 200 EMA from top to bottom then it indicates the sell signal. In the figure, the same cross is shown. At the same time, you can notice that the VuManChu Cipher B Indicator shows the red dot. Next, we can see that the Money flow is also red that indicating the flow of money out of the asset.

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Sell Trade || TradingView

In this way, all indicator confirms the sell signal so, I place a sell trade at this point when a red dot appears. You can see in the above figure; I place a sell trade just after EMA crossover and red Dot. After that, you can see that the market is on a downtrend.

In this, we can set the sell trade setup using the VuManChu Cipher B Indicator with the conjunction of the EMA indicator. I place sell trade with proper trading management. You can see that the stop loss and take profit is also applied on the chart.

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Question no :6

Using the knowledge gained from previous lessons, do a better Technical Analysis combining this trading Strategy and make a real buy or sell order in a verified exchange. (You should demonstrate all the relevant details including entry point, exit point, resistance lines, support lines, or any other trading pattern)


After learning the trade using the above indication, I will place buy trade and sell using both indicators after confirming the signals. I will use short period lengths of EMA like 55 and 9 because I want to place short buy and short sell trade. Long EMA like 200 and 55-period lengths are for long buy and sell trades.


Buy Trade


I chose DOT/USDT pair for a buy trade. As we discussed above, when the conditions are fulfilled, then we place buy trade otherwise, we need to avoid placing a trade. In the figure, you can see that, the EMA cross. When 9 EMA crosses 55 EMA from bottom to upward direction then it indicates the buy signal.

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Buy Trade || TradingView

In the figure, the same cross is shown. At the same time, you can notice that the VuManChu Cipher B Indicator shows the green dot. Next, we can see that the Money flow is also green that indicating the flow of money into the asset. Trade management data is here.

Price = $28.59
Stop Loss = $ 28.08
Take Profit = $ 29.55
Risk Reward = 1:2

Here you can see the Order details that I place on the Binance exchange. You can see all the data about orders. You can also see that the buy order is filled successfully. All the details about order are mentioned in the figure.

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Order Details || Binance

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Conclusion


VuManChu Cipher B is a technical indicator tool that is comprised of multiple indicators. We can select indicators according to our choice and trading strategy by setting. The indicators involved in VuManChu Cipher B are Wave Trend, RSI, Stochastic RSI, and Money Flow Index.

We can say that the VuManChu Cipher B is a one in all indicator. We cannot add more than three indicators to the chart. VuManChu Cipher B indicator has multiple indicators. It produced multiple signals regarding the market like Money flow, oversold and overbought of assets, etc.

VuManChu Cipher B indicator is not a trend-based indicator. So, we should additional trend-based indicator with VuManChu Cipher B to do trading. We can confirm the market signal using the addition indicator. Overall, it is a package indicator. Traders can take benefits without paying any fees.
Thank You!
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Respected:

Professor: @reddileep

Professor: @kouba01

Author: @noshi


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