[ Highly Profitable Trading Strategy with VuManChu Cipher B ]-Steemit Crypto Academy | S5W6 | Homework Post for professor @reddileep
Hello everyone. Good to see you all once again in 6th week of steemit crypto academy. This week, we have learned the VuManChu Cipher B indicator. After reading the lecture, carefully, i am going to dot he assignment for this week.
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Question 1 - Define VuManChu Cipher B Indicator in your own words.
- VuManChu Cipher B Indicator
We use multiple indicators in the crypto academy to analyze the market. Each indicator has its own specialty and use to predict the market moves. This analyzes help the traders to predict where the market will move next. Some indicators are there which are being used to confirm the current market trend, Some use to predict the next market move, some predict the market future price ,etc.
When the traders use the indicators, the indicators may produced the false results because of which, the traders face the lose. No indicator is 100% accurate, there is chance of producing the false signals in every indicator. SO best thing is to use the multiple indicators to analyze the market. This help to analyze the market in more effective way. Moreover, the traders can easily filter out the false signals. A lot of indicators are there and today, we will learn about the VuManChu cipher indicator.
This indicator is combination of multiple indicators to predict the market future. This is very useful and effective indicator which help to predict the market future moves. This technical based indicator is being used all across the world to analyze the market.
This indicator combine Market volume, Market Momentum, Money flow, RSI. These indicators collectively produced more authentic entry and exit spot which help the traders to end their trading in profitable way. This indicator is very easy to read and simple to understand. This is available on tradingview.com to use with free of cost.
Here the blue waves show the market is in overbought zone or oversold zone. There are red and green dots too on the VuManChu indicator. The red dots show the seller pressure and the green dots show the buying pressure. This indicator is use to determine the market trend. There are two lines which represent the cumulative volume flow. These lines keep moving within the blue waves on the VuManChu indicator.
This is very colorful indicator which is use to predict the market bullish and bearish trend. We cannot add more than three indicators on the chart without purchasing the platform package. But the VuManChu indicator allow us to analyze the market using multiple indicators. When there is green dot in cross over of the light and dark blue line, this indicate the bullish trend. This produced the buy signals.
When there is the red dot in the cross section of the light and dark blue line of the indicator, this indicate that there is bearish trend. This produced the Sell signals. This is similar to the Market cipher indicator with slight different. The different is that this indicator is based on the wavetrend indicator. This is very simple to add this indicator on your chart from the tradingview.com.
This is a little bit to understand because here a lot of indicators are combined. But this indicator analyze the market in efficiently. This indicator can also be use to determine the direction of market. When the buying pressure increase, the demand of the asset get increased, the supply get decreased. Which result in increment of the coin's price. The down move downward. When the selling pressure get high, the demand decrease and supply increase. The price of coin start moving downward direction.
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Question 2- How to customize the VuManChu Cipher B Indicator according to our requirements? (Screenshots required)
- Customizing the VuManChu Cipher B Indicator
- I am going to use the Tradingview.com to answer this question.
- Search for the tradingview.com on the google chrome and open the chart of your own choice.
- Then click on the indicator Icon which is appear on the top in the manu bar
- A search bar will be shown. Search for the VuManChu Cipher B indicator.
- The click on the option which give result with keyword VuManChu Cipher B indicator to the price chart.
- When you will click on it, the indicator will applied to your chart.
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- VuManChu Cipher B Indicator Settings
Once you have added the chart, now you can change its setting. For this, click on the setting icon. .png)
A new page will appear with multiple options.
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- Input Section
This is the first section which appear on the setting icon. Here you can change the setting to make the chart more simple. The chart is still complicated, for make it less messy, click on the setting icon, from the Input section, uncheck two tabs. First is Show WT Regular Divergences and second one is Show 2nd WT Regular Divergences boxes. Uncheck both of these boxes because these are not required. Then scroll down a little bit more and uncheck the Show Stochatic RSI box too. We have unchecked them because the professor have taught us
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- Style Section
This is the second section from the setting of the indicator. There are a lot of irrelevant boxed here which have been checked. We need to uncheck them for effectiveness of the indicator. First uncheck the VWAMP and MFI Bar Colors indicator boxes because both of these are irrelevant for this trading strategy which the professor have taught us in lecture. This will help to generate more clear view of the indicator on the chart.
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- Visibility Section
This is the last section. Here we can change the time fame according to our own need. .png)
Question 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)
- VuManChu Cipher B indicator AppearanceThe VuManChi is combination of the multiple indicators which are comprised together. There are different parts of this indicator which need to understand to get clear understanding of VuManChu Cipher B indicator.
- Money Flow Index Indicator
This appear in form of green and red clouds on the Indicator. These clouds are there between the wave trends which show the in and out flow of the money of the asset. When the color of that cloud is green, this indicate the inflow of the asset. When the color is red, this indicate outflow of the money.
- WaveTrend Indicator
Wavetrend indicator occupies the huge space on the VuManChu cipher B indicator which oscillate between the -100-100 points. Th general color of the Wavetrend indicator is blue. This is a combination of two lines which move within the indicator boundary. Its color is actually light blue and dark blue. When the lines cross each other, the red and green dots are appeared. When the market move downward, the Red dot is appear. When the market start rising up, the green dot is appeared.
These red and green dots show the overbought and oversold market region and help to identify the wavetrend divergence . These are the points when the red and green dots are appeared according to the current market trend. The red dot mean the downtrend is occur and the green dot mean that the uptrend has been occur in the market.
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Question 4- Demonstrate your preparation for the Trading Strategy by 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.)
- VuManChu Cipher B indicator And EMA
The VuManChu cipher B indicator is combination of multiple indicators which help to generate more accurate and authentic trading signals. The traders can buy or sell the coins at best entry and exit spot using the VuManChu Cipher B indicator. I will add he Two EMA for my trading strategy.
I first add the two EMA. Then change the setting. First EMA was set at the 55-period MA and second at 200-Period MA. It will look like below screen short
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55-Period and 200-period Moving Average
This is a technical analysis tool which help to analyze the market for long term. Here the closing price of the 200 period are being used. The closing prices of the last 200 days are add up and the divide the answer with 200 to calculate the 200-period MA.
Similarly the 55-period moving average is a technical analysis tool which help to analyze the market for short term. Here the closing price of the 55 period are being used. The closing prices of the last 55 days are add up and the divide the answer with 55 to calculate the 55-period MA.
The Moving average help to produce the best trading signals. The traders can use these signals to get he best entry and exit spots. When the Moving Average 55 cross the 200-period MA, this indicate that the market is rising upward. The price is increasing. The market is in uptrend. So the traders should enter into the market by buying the coins because the price is rising so investing in coin will be profitable. This generate the entry signals.
When the Moving Average 200 cross the 55-period MA, this indicate that the market is declining downward. The price is decreasing. The market is in downtrend. So the traders should exit from the market by selling the coins because the price is decreasing so selling the coins will be safe. This generate the exit signals.
Question 5 - Graphically explain how to use VuManChu Cipher B Indicator for Successful Trading. (Screenshots required)
- Using VuManChu Cipher B indicator
I have explained how to add the EMA in the above question. Now i will implement the above discussion to identify the bullish and bearish market trends. I will use the VuManChu Cipher B and the EMA to identify the bullish and bearish trends.
Bullish Trend
In the Bullish case, the EMA-55 cross the 200-period MA and start moving upward direction. This indicate that the market is rising upward. The price is increasing. The market is in uptrend. So the traders should enter into the market by buying the coins because the price is rising so investing in coin will be profitable. This generate the entry signals. But i is compulsory to confirm the signals using the VuManChu Cipher B indicator.
The Inflow of the capital is indicated when the MFI turned into the green color. When the green color cloud is appeared on the indicator, this indicate the bullish trend. This show price is rising and generate the buy signal
Then the confirm the bullish trend more, there should a a green color dot when the light blue colored line and dark blue colored line cross with each other. AT this point, there should be a green color dot.
This indicate market is in bullish trend. Buying pressure is high as compare to the selling pressure. The price is rising upward. The traders should enter into the market.
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In the above screen short, there is bullish season as the EMA and the VuManChu Cipher B has confirmed it by producing the uptrend signals. All the conditions which i mentioned above are confirmed so there is uptrend. The traders should enter into the market.
Bearish Trend
In the Bullish case, the EMA-200 cross the 55-period MA and start moving upward direction. This indicate that the market is moving downward. The price is decreasing. The market is in downtrend. So the traders should exit from the market by selling the coins because the price is decreasing so selling in coin will be profitable and will be more safe. This generate the exit signals. But i is compulsory to confirm the signals using the VuManChu Cipher B indicator.
The outflow of the capital is indicated when the MFI turned into the red color. When the red color cloud is appeared on the indicator, this indicate the bearish trend. This show price is falling and generate the sell signal.
Then the confirm the bearish trend more, there should a a red color dot when the light blue colored line and dark blue colored line cross with each other. AT this point, there should be a red color dot.
This indicate market is in bearish trend. Buying pressure is low as compare to the selling pressure. The price is falling downward. The traders should exit from the market.png)
In the above screen short, the re is bearish season as the EMA and the VuManChu Cipher B has confirmed it by producing the signals. All the conditions which i mentioned above are confirmed so there is downtrend. The traders should exit from the market.
Question 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)
I have used the BTC/USDT chart. In the above chart, we can see that the EMA-55 cross over the EMA-200 and move upward. The EMA-55 is above the EMA-200 which indicate that there is bullish trend. This indicate price is rising in the market. So the traders should enter into the market by buying the coin. But before that, we need to confirm the bullish trend from the VeManChu Cipher B Indicator.
There is green cloud which indicate the inflow of capital. This confirmed that there is bullish trend. We have studied that when there is red color cloud as MFI, this indicate the bearish trend. But when the MFI is shown in form of the green color cloud, this indicate the uptrend. As there is green color cloud which indicate the inflow volume of capital. This confirmed the bullish season.
The third thing which we need to check is the cross over of the light blue line and dark blue line. When the lines cross over each other, there should be a green dot to confirm the bullish trend. As we can see that there is green dot, which mean that there is bullish trend and price is rising upward. The traders should enter into the market.
So now we will buy the BTC coin from the binance exchnange platform.
Conclusion
This indicator is combination of multiple indicators to predict the market future. This is very useful and effective indicator which help to predict the market future moves. This technical based indicator is being used all across the world to analyze the market. This indicator combine Market volume, Market Momentum, Money flow, RSI. This indicator can also be use to determine the direction of market. When there is green dot in cross over of the light and dark blue line, this indicate the bullish trend. This produced the buy signals. When there is the red dot in the cross section of the light and dark blue line of the indicator, this indicate that there is bearish trend. This produced the Sell signals.
This is use to confirm market trend, get oversold and overbought region signals, get best entry and exit spots and show the inflow and outflow of the capital.
Special thanks to professor @reddileep
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