MarketCipher Scan — how to read it

The MarketCipher Scan is a faithful port of the popular VuManChu Cipher B (a Market Cipher B-style) momentum indicator, run across a whole watchlist and nine timeframes (5m, 10m, 15m, 30m, 1h, 4h, 1d, 1w, 1M). At its heart is the WaveTrend oscillator and its famous buy/sell circles — and, unlike a single chart, the scan grades every circle type on its actual track record so you can see which ones perform on which ticker and timeframe.

Open the MarketCipher Scan →

This is a members-only tab. The guide below is free to read; opening the live scanner requires a signed-in paid account.

WaveTrend, in plain terms

WaveTrend is a smoothed momentum oscillator. It measures how far price has stretched from a short-term average, normalizes that, and smooths it into two lines (a fast wave and a signal line). When the waves swing deep into oversold territory and turn up, buyers are stepping in; deep into overbought and turning down, sellers are. The circles mark those turns.

The signals

• Green circle (Buy) — the WaveTrend crosses up while oversold (signal line at or below −53). A momentum turn from a washed-out low.
• Red circle (Sell) — the WaveTrend crosses down while overbought (signal line at or above +53). A momentum turn from a stretched high.
• WT divergences (B+ / S+) — price makes a higher high (or lower low) but the WaveTrend does not, flagged from confirmed fractal tops/bottoms. Divergences warn that the current move is running out of fuel.
• Gold circle — the rare, high-conviction bottom: a bullish WT divergence whose previous trough was very deep (≤ −75), that has recovered by at least 5 points, with RSI under 30 at that trough. Shown as its own signal type so its record can be judged (the original indicator's advice is "don't buy it blindly").

Supporting momentum

• RSI (14, Wilder) — the classic overbought/oversold gauge.
• RSI + Money Flow area — a volume-weighted money-flow ribbon showing whether buying or selling pressure backs the move.
• Stochastic RSI — a faster oscillator (K/D) for timing within the larger WaveTrend swing.

Trade levels & grading

Every signal carries Ripster-style trade levels normalized to the bar's ATR(14): a stop 1 ATR against the entry and targets at 1, 2 and 3 ATR. The backtest then grades each signal type, per timeframe, on whether it reached TP1 before the stop — so the table shows which circles genuinely work rather than which look good on a hand-picked chart.

The panes

Signal grid (left)

Each watchlist ticker across the nine timeframes, showing the latest circle/divergence, its freshness, and the momentum state. Gold circles render as an orange B, divergences as B+/S+ pills. Click a cell to load its chart.

Indicator chart (right)

The full MarketCipher chart: the WaveTrend area with buy/sell/gold circles and divergence lines, the money-flow ribbon, and a DTR line (daily-range gauge) — the same picture the Pine indicator draws.

Performance / track record

Per signal type and timeframe: win rate on TP1-before-stop, reward-to-risk and expectancy, so you can lean on the circles with a real edge.

Potential Trade Ideas + Risk Graph

Rule-based ideas from the live signal — options spreads for equities/ETFs, long/short asset plans for crypto — each with a Risk Graph handoff that pre-fills the trade.

Concepts & glossary

• Oscillator — an indicator that swings within a bounded range to show overbought/oversold conditions and momentum turns.
• Divergence — price and an oscillator disagreeing (e.g. price higher, momentum lower), an early warning of exhaustion.
• Fractal — a confirmed local top or bottom used to anchor divergence detection.
• Money flow — a volume-weighted read on whether buyers or sellers dominate.
• ATR — Average True Range, used here to size every stop and target.

Related scanners: the Squeeze Scan for compression, the RipsterCloud Scan for trend-pullback entries, and the EMACloud Scan for key-level reactions. See them all on the Help hub.

Educational content only — nothing on this page is financial advice or a recommendation to buy or sell any security. Signals are rule-based analytics; backtested and historical results do not guarantee future performance. Markets involve risk. © SPX Lens · About · Help & FAQ