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I Bought Bitcoin Late 2022 at $16.9k Thanks to this Indicator, Ahead of 137% Rally

this is the easiest indicator you can use as a beginner in order to get clear signals on when to buy and sell crypto (and it's free)

Author

Kierin M
October 06, 2023

The Indicator Every Trader Needs for Spotting Breakouts


Hi!

Kierin here. Today, I want to share with you an insanely profitable tradingview indicator.

This one:

Highly profitable vmc indicator

It can help you identify market tops and bottoms while providing entry signals on short and long-term timeframes.

This Indicator is so good because it combines many indicators, allowing you to see the market trend quickly.

You might be wondering how much it costs.

The good news is…

Nothing!

There is a similar tool (probably just a copy) of this Indicator with a hefty $1500 price tag slapped onto it. 👀

Btw this indicator helped me spot the $link breakout before it happened.

But luckily, I’ve got you covered with this tutorial.

But enough chit-chat“, allow me to share everything you need to know about this Indicator and how I use it to improve my trading and long-term investing.

The Indicator I'm using is called: "VuManChu Cipher B + Divergence.”

How do you access the Indicator?

You first need a tradingview account.

A free account is enough.

Then:

Tradingview > clicking on indicators > search for“VMC Cipher.”

The first time you add this Indicator, you will have information overload.

It will look like this:

For that reason, you can watch the video below in my tweet to copy my settings.

How to use this Indicator?

Let’s move on to the exciting part of why I absolutely LOVE this Indicator.

This Indicator is excellent because it combines multiple indicators into one:

➡️ WaveTrend oscillator
➡️ Bearish/Bullish divergences
➡️ MFI (Money Flow Index)

Here’s an overview of all the elements you will see on the VMC indicator so that you know what I’m talking about.

VMC overview. It's quite overwhelming at first, but it gets easier.

At the end of this post, you will find more complete descriptions of each VMC element.

Like with any chart and Indicator, it’s important to follow this rule:

➡️ Higher timeframe trend > lower timeframe trend

If the weekly trend is in the overbought area, there will be a higher chance of a correction in the longer-term timeframe.

It would be best to keep the higher timeframe trend in mind when trading on lower timeframes.

So, if the weekly timeframe has a bearish sell signal, you probably shouldn’t look for longs on the daily timeframe.

Now that we’ve got that out of the way.

➡️ When the blue wave is in the overbought area

And a red dot 🔴 appears (bearish divergence)

 🔴 = higher chance of a trend shift = higher probability of a reversal

Multiple red dots might appear when the price goes higher.

When that happens, AND the blue wave is above the overbought area, you should start looking at taking some profits.

Overbought and oversold areas are good places to take profit and buyback.


➡️ When the blue wave is in the oversold area,

and a yellow dot 🟡 appears (bullish divergence)

= higher probability of a good market exit.

DCA spot or buy call options for less risk

Important: These red sell and yellow buy dots don’t guarantee that the market will turn bearish or bullish.

Bullish Diamonds and Flags 💎🏳️

A much better buy-and-sell confirmation is the bullish/bearish diamonds and flags.

The higher the timeframe the diamonds/flags appear, the more powerful they are.

When a diamond or flag appears, it doesn’t mean that the price will instantly drop.

But it’s a good time to start dollar cost averaging into or out of the market.

Tip: If it’s a sell signal, look for exits at the next major resistance.

In the messy chart below, I’ve marked each time there’s a blue buy diamond and the subsequent price increase.

Blue buy diamonds are good areas to DCA into the market.

Even though not all were profitable in the short term if you just bought when the blue diamond appeared.

But your average buying price would be much better if you started buying every week after a blue diamond appeared.

Very profitable!

Let’s look at how to sell the market top.

Bearish Diamonds and Flags 💎🏳️

Who doesn’t want to start taking profit at the top so that they can buy back during the bear market?

I know I do.

Now, let’s say you have no patience.

The blue wave is above the oversold level 2

and the red sell diamond appears on the weekly timeframe.

The first time, it appears you would have sold at $ 37,000 (definitely not the best exit.)

BTC 22nd of February 21 = 51k. Now it’s -47%.

The second $BTC sell would happen at $51k

and the third at $ 47,000.

That means you would have an average selling price of $ 45,000.

It’s not the top, but it's still not bad if you ask me.

It would give you much more cash to buy more Bitcoin below $ 20,000.

Moreover, if you use a DCA out strategy when the red sell diamond appears, and the blue wave is above the oversold area at least once, you could probably have a much higher average sell price.

Here are two more tips/rules that I like to use.

You need to find which one works for you.

Trading Tip For Vumanchu Leverage Strategy

Strategy 2

Here’s another useful trick that works on any timeframe.

  1. Wait for a Blue Buy Diamond (the closer the wave is to the oversold area, the better)

  2. Wait for the first yellow buy circle

  3. Start buying as soon as the MFI (Money Flow Index turns green)

Trading Tip For Vumanchu Leverage Strategy

Strategy 2

Rule 1: Only take longs when the price exceeds the 200-period EMA. Take shorts only when the price is below the 200-period EMA.

Rule 2: Take a long position only after the price has returned to the 50-period EMA. For a short, the price should pull back into the 50-period EMA.

Rule 3: Longs can only be taken if the money flow is green, and shorts only when the money flow is red.

MFI switching to green means you can start looking for longs

Rule 4: Blue waves should be below the zero line for longs. For shorts, blue waves should be above the zero line.

Entry Signal: Provided by bullish/bearish diamonds and flags

Community Corner

Here are some tweets from chads that use the VMC indicator regularly.

As you can see, some are spot-on with their sells and buys.

VMC Libroooory and Explanations

If you’ve made it so far, congrats!

In the next part, I’ll explain each element of the VMC indicator.

So, if you’ve been reading and didn’t understand everything, this section might clarify it for you.

But if you want to know more about why one of the flags or diamonds is printing a buy or sell alert, you can return to this post below and quickly look it up.

It might be helpful in a pinch, so you might want to bookmark it.

  1. WT Wave 1 & WT Wave 2: These are two variations of the WaveTrend Oscillator. (more about the WaveTrend Indicator here)

  2. Oversold level: In the WaveTrend Oscillator's context, this refers to a scenario where the oscillator is below the oversold band (green lines). If it crosses above the signal (dotted line) in this state, it indicates a potential BUY signal.

  3. Overbought level 1 & Overbought level 2: In the WaveTrend Oscillator, the“overbought” condition occurs when the oscillator is above the overbought band (red lines). Crossing below the signal when in this state implies a potential SELL signal.

  4. Red Sommi bearish flag: A pattern indicating a potential bearish (downward) price movement. This pattern emerges when the MFI+RSI Area is RED (below 0), the WaveTrend waves are above 0 and cross down, and the VWAP Area is below 0 on a higher timeframe.

  5. Red Sommi bearish diamond: A bearish counterpart to the bullish diamond, suggesting potential price declines. The conditions include a red high-time frame Candle, the WaveTrend above 0, and crossing down.

  6. Blue Sommi bullish flag: A pattern indicating a potential bullish (upward) price movement. This pattern emerges when the MFI+RSI Area is Green (above 0), the WaveTrend waves are below 0 and cross up, and the VWAP Area is above 0 on a higher timeframe.

  7. Blue Sommi bullish diamond: A bullish pattern suggests the price has a higher probability of increasing. The conditions include a green HT Candle, the WaveTrend below 0, and crossing up.

  8. VWAP (Volume Weighted Average Price): An indicator gauges the average price a stock has traded at, weighted by volume. Understanding the average price at which most traders have purchased a security is essential.

  9. Buy (yellow, not buying recommendation): The provided source information mentions green and gold/orange circles associated with buying signals but doesn't elaborate on a yellow signal. Without specific information, one can infer that a "yellow" signal might require additional scrutiny before considering a trade.

  10. RSI + MFI Area: This combination represents the alignment of two momentum indicators: RSI (Relative Strength Index) and MFI (Money Flow Index). When these two align specifically, like turning RED and falling below 0, they can amplify a signal, such as indicating a Sommi bearish flag.

Thank you so much for reading.

I’ll catch you in the next one.

Cheers!
K8

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