VMC CIPHER A Trading Guide

The VuManChu Cipher A is a comprehensive overlay indicator that combines multiple EMAs (Exponential Moving Averages), WaveTrend oscillating logic, and RSI/MFI components to generate distinct entry and exit signals directly on the price chart.

Deep Dive: Component Tracking

Cipher A does not just draw lines; it tracks 8 different Moving Averages simultaneously while running an invisible WaveTrend and RSI oscillator in the background to calculate precise entry triggers.

• EMA Ribbon: The indicator computes 8 EMAs with lengths of 5, 11, 15, 18, 21, 24, 28, and 34. The ribbon paints Blue (Bullish) when the fast EMA (11) is above the slow EMA (34). It paints Gray (Bearish) when the fast EMA drops below the slow EMA.
• WaveTrend (WT): A background momentum oscillator calculated using the typical price (HLC3). It creates two internal lines: WT1 (fast momentum) and WT2 (smoothed momentum).
• RSI + MFI: A mathematically combined metric that tracks relative strength and volume money flow, used exclusively to filter extreme bottom signals.

Deep Dive: Understanding the Visual Signals

The indicator prints specific shapes on the chart when its internal variables mathematically cross.

• Red Diamond (Bearish Shift): This triggers when the internal WaveTrend oscillator crosses downwards (WT1 drops below WT2). It acts as an early warning that upward momentum is exhausting.
• Blood Diamond (Strong Bearish Reversal): This is Cipher A's most powerful sell signal. It requires two things to happen on the exact same candle:
  1. A WaveTrend downward crossing (Red Diamond).
  2. A bearish EMA crossover (the fastest EMA 5 crosses below the EMA 11).
  When these two factors align, the "Blood Diamond" is printed, signaling a high-probability structural drop.
• Yellow Cross (Oversold Bottom): Ironically, this signal also triggers on a downward WaveTrend cross (Red Diamond), BUT it is overridden if the market is deeply oversold. It requires:
  1. WaveTrend 2 is between -80 and 45.
  2. RSI is crushed between 15 and 30.
  3. RSI+MFI is deeply negative (below -5).
  The Yellow Cross indicates a "false drop", where selling pressure is mathematically exhausted and a bounce is highly likely.
• Blue Triangle (Trend Resumption): A simple, effective trend-following signal. It prints when EMA 11 crosses back above EMA 15, indicating the intermediate trend has aligned with the short-term momentum.
• Long/Short EMA Dots: Green and Red dots plotting basic macro trend shifts (EMA 11 crossing EMA 34).

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, you can leverage the discrete signals generated by this indicator to automate setups.

1. Trend Reversal & Entry Markers

Unique symbols plotted upon detecting momentum shifts or exhaustion.

• _bloodDiamond — Fires when a WaveTrend crossing AND a major EMA crossing happen simultaneously (strong reversal).
• _redDiamond — Fires on a standard WaveTrend crossing downwards (bearish momentum shift).
• _yellowCross — Fires on deeply oversold WaveTrend and RSI conditions coupled with a diamond signal (strong potential bottom).
• _blueTriangle / _longEma / _shortEma — Various confirmation signals on specific fast vs slow EMA crossovers.

Strategy Example: Create a highly selective Mean Reversion buy condition by requiring _yellowCross is true, ensuring you buy extreme dips.

2. Underlying Values

Access the core data numbers to build manual logic.

• wt1 / wt2 — The exact internal WaveTrend oscillator lines.
• rsi / rsiMfi — The standard RSI and RSI with Money Flow overlay.

Strategy Example: Only accept long entries from other indicators when the internal wt1 > wt2 (confirming upward momentum).