VuManChu Cipher B Divergences

VuManChu Cipher B is a powerful oscillator that combines elements of Divergence, 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 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.

Note

The indicator can not not 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 Settings in Veles

• 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.

How VuManChu Variations Work

1. VMC Wave Trend

This is one of the earliest local reversal signals.

Open Long (or Close Short):

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

Open Short (or Close Long):

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

2. VMC Divergence

This is a confirmed reversal signal, more reliable compared to the 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
• Enter at the end of the divergence

3. VMC Money Flow

This is 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

Why VuManChu is Useful in Crypto Trading

The crypto market is characterized by sharp reversals, false breakouts, and strong impulses after accumulation/distribution zones. VuManChu helps:

• Catch early reversals from overbought/oversold zones (Wave Trend)
• Receive confirmed signals of trend exhaustion (Divergence)
• Identify changes in market momentum and dominant side (Money Flow)
• Work on any timeframe – from 1-5 minutes (scalping) to 4 hours to 1 day (swing)

Usage Examples

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 Up + 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)

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’s suitable for both beginners (simple interpretation of zones and crossovers) and experienced traders for creating multi-level strategies with filtering by volume, volatility, and trend. We recommend always run a backtest for each variation before launching it into live trading.