- Apr 2017
Market Cipher B
Trading Symbols and Indicators Guide
Market Cipher B is intended for Momentum Trading, and can be used with Regular Candles or Heiken Ashi Candles.
- 6 oscillators optimized and consolidated into one
- Green Dot market bottoms
- Ultimate market barometer and trade initiator
Money Flow Wave
The Money Flow Wave is a momentum indicator and its intent is to display the market condition based on the flow of money into and out of the market. The wave range travels between 100 and -100. Green indicates money flowing in and red indicates money flowing out. The Money Flow Wave can also be used to confirm other indicators that are built into Market Cipher B. Positive results have been found on all time periods.
The Momentum Waves are used to measure and visually display the strength and direction of an asset. Market Cipher B breaks momentum down into two waves. The light blue wave is intended to display momentum as a leading wave and the blue wave displays momentum as a lagging wave. By overlaying the two, this helps to show when an assets strength is increasing (oversold) or when its nearing exhaustion (overbought). Momentum Waves can also be used to easily spot divergent price action.
100% Scale Level
The 100% Scale Level is the maximum level that the RSI and Stochastic indicators travel. The center line on Market Cipher B is zero.
The RSI indicator used in Market Cipher B is an oscillator and more of a heavily modified and smooth stochastic. The modifications combine the traits of the traditional RSI making it a more responsive and effective signal in Market Cipher B. This indicator ranges between zero and 100. A level above 80 is considered to be overbought while a reading below 20 is considered to be oversold. This can be useful in spotting short term trends and divergences.
The Stochastics used in Market Cipher B is a smoothed oscillator indicator that ranges between zero and 100. A level above 80 is considered to be overbought while a reading below 20 is considered to be oversold. Stochastics can be useful in spotting short term trends. When the Stochastics is above 50, price action is seen as trending higher and when crossing below 50, price is seen as trending lower. The strength of the signal is show by the green and red line color.
Trigger 1 is an alert enabled line that can be adjusted up or down in the Market Cipher B settings.
The Overbought Level is an alert enabled line that can be adjusted up or down in the Market Cipher B settings. Setting an alert on this level can provide early notification that the asset is approaching a key level.
VWAP Momentum Wave
The VWAP Momentum Wave is not the same as the traditional VWAP (volume weighted average price) indicator as used in Market Cipher SR. This indicator is intended to simulate some aspects of the traditional VWAP but is based on momentum. This indicator should be used in conjunction and confirmed with other Market Cipher B indicators. Success has been found longing when the wave crosses over zero and shorting when the wave crosses under zero. This is the opposite of the tradition VWAP whereas a rule you only short above VWAP and long when below.
Money Flow Bar
The Money Flow Bar is a simplified display of the Money Flow Wave indicator. This bar is used to show the zero-crossing location of the wave more clearly.
The Oversold Level is an alert enabled line that can be adjusted up or down in the Market Cipher B settings. The settings can be found at the top left corner of the indicator by hovering over the indicator name and clicking on the cog wheel symbol as shown in photo #2. Instructions on setting up an alert can be found at the end of this guide.
Trigger 2 is an alert enabled line that can be adjusted up or down in the Market Cipher B settings. This alert function allows early notification when used together with your trading strategy.
Momentum Green Dot
The Momentum Green Dot is a bullish indicator that is alert enabled. This indicator is strongest when deep into the oversold area indicating that a reversal could be near. This indication is also useful when used as a pivot or anchor point waiting for a trigger wave to form or to spot price divergence. Information on anchor and trigger waves as well as spotting divergences can be found in the video section at the end of this guide.
Momentum Wave Crossing
The Momentum Wave Crossing is an alert enabled condition that triggers a small red dot when the light blue wave crosses under the blue momentum wave indicating price is currently moving lower. A small green dot will print when the light blue momentum wave crosses over the blue wave indicating price action is currently moving higher. Instructions on setting up an alert can be found at the end of this guide.