VuManChu Cipher B + Divergences

VuManChu Cipher B + Divergences is a powerful oscillator that combines elements of divergences, overbought/oversold zones, and money flow analysis. The original version was created by the TradingView community (by VuManChu) and is very popular among crypto traders for its ability to catch reversals and momentum shifts early.

On the Veles platform, this indicator has three independent signal variations:

1. VMC Wave Trend
2. VMC Divergence
3. VMC Money Flow

For each variation, logic switching is available — “Reverse Signal” mode.

How VuManChu Works

• Timeframe — any of the ones available on the platform.
• Calculation Type — at bar closing (recommended) or once per minute (false signals are possible).
• Additional levels (-60, +60, 0) are fixed in the logic and cannot be edited in the interface.

The indicator cannot be added to the TradingView chart — it works solely as a signal generator for the Veles bot. When you click “Calculate”/“Show Signals” in the bot editor, entry markers (the points where the bot received a signal from the selected VuManChu variation) are displayed on the chart.

VuManChu Signals

VMC Wave Trend

This is one of the earliest local reversal signals.

Open Long (or Close Short):

• Green dot below -60 — a classic signal of severe oversold conditions with a high probability of an upward reversal.

Open Short (or Close Long):

• Red dot above +60 — an overbought signal and a likely downward reversal.

VMC Divergence

A confirmed reversal signal, more reliable compared to Wave Trend.

Bullish divergence: the price makes a new low, but the oscillator no longer confirms a further decline → sellers are weakening.

Bearish divergence: the price makes a new high, but the oscillator no longer confirms a rise → buyers are weakening.

Open Long (or Close Short):

• a bullish divergence appears (green divergence line)
• the first (lower) point of the divergence is below -60
• entry occurs at the moment the divergence ends

Open Short (or Close Long):

• a bearish divergence appears (red line)
• the first (upper) point of the divergence is above +60
• entry occurs at the end of the divergence

VMC Money Flow

An indicator of a change in market dominance and the direction of overall capital flow.

0 crossover from below: buying pressure is increasing, the market is entering a bullish momentum.

0 crossover from above: sellers are gaining the upper hand, a bearish momentum is beginning.

Open Long (or Close Short):

• Money Flow line moves from the red to the green zone
• line crosses level 0 from bottom to top

Open Short (or Close Long):

• Money Flow line moves from the green to the red zone
• line crosses level 0 from top to bottom

VuManChu in Veles Bots

The crypto market is characterized by sharp reversals, false breakouts, and strong impulses after accumulation/distribution zones. VuManChu covers all key scenarios: early entries from extreme zones (Wave Trend), confirmed trend exhaustion signals (Divergence), and market momentum shifts (Money Flow).

Aggressive Reversal Entry in Long:

• VMC Wave Trend, 15-minute timeframe
• Entry after the green dot below -60 + confirmation from RSI < 30 or volume

Confirmed Reversal in Short:

• VMC Divergence, 1-hour timeframe
• Bearish divergence with the first dot above +60 + price near resistance

Momentum Change in Long:

• VMC Money Flow
• 0 crossover from bottom to top + series of green candles (Candlestick Trend filter 4–5)

Combinations with other filters:

• VuManChu Wave Trend + Volume Spike Detector > 1.5 (reversal + volume spike)
• VuManChu Divergence + ATR% > 1.2% (reversal with increased volatility)
• VuManChu Money Flow + EMA 50/200 (momentum change in the direction of the global trend)

Limitations

• The indicator cannot be added to the TradingView chart — it works only within the Veles platform as a signal generator.
• The “once per minute” calculation type may produce false signals — the “at bar closing” calculation is recommended.
• Levels -60, +60, 0 are fixed in the logic and cannot be edited.
• Wave Trend produces early but less reliable signals — recommended for use together with additional filters.
• In a sideways market, divergences may form frequently and produce false entries.

Summary

VuManChu is one of the most versatile and popular oscillators for trading. It provides three different types of signals: from early and aggressive (Wave Trend) to confirmed and reliable (Divergence and Money Flow). It is suitable for both beginners (simple interpretation of zones and crossovers) and experienced traders building multi-level strategies with filtering by volume, volatility, and trend. We recommend always running a backtest for each variation before launching it into live trading.