Frankie Candles Essentials

The Frankie Candles Essentials toolkit is a comprehensive set of trading features crafted by renowned trader Frankie Candles. This toolkit serves as an indispensable asset for traders by focusing on multi-timeframe (MTF) oscillator divergences and volume profiles, aiding in the identification of various reversal patterns in the market. Additionally, it incorporates retracement levels from the 'Golden Pocket' to improve trading strategies and optimize entry and exit points.

How to Trade with the Frankie Candles Essentials Toolkit?

When you incorporate the Frankie Candles Essentials script into your chart, you will need to choose the calculation interval for the 'Top-Down Volume Profile.' This can be done by clicking on your chart to set the starting and ending points of the calculation interval.

Mastering the Top-Down Volume Profile

The Top-Down Volume Profile is an advanced version of the classical fixed-range volume profile. It provides insights into the volume traded within specific price areas, determined by the Rows setting, which can go up to 250 rows. This section aids traders in locating areas of significant trading activity and volume concentration. The Value Area (VA) is particularly notable for highlighting the areas where the bulk of the trading volume happens, assisting in identifying potential support and resistance levels.

The Point of Control (POC) further enhances trading strategies by pinpointing the price level that exhibits maximum trading activity, serving as an essential reference point for traders.

Enhancing Analysis with Divergences

The ability to highlight divergences on charts is vital for technical analysis. The Frankie Candles Essentials toolkit includes major indicators such as RSI, MFI, and WaveTrend, each with MTF support. While external oscillators can be integrated, MTF divergence detection is exclusive to the built-in indicators.

Once the Top-Down Volume Profile is configured, historical divergences are adjusted by the Value Area (VA), with bearish divergences noted above the upper VA and bullish ones below the lower VA. Notably, these divergences are marked with an iconic 'sauce can' display, a unique hallmark of Frankie Candles.

Traders can further refine their analysis using the 'Filter According To POC' setting, which filters out divergences based on their relation to the POC, allowing for a more precise analysis.

It's important to note that divergences are detected N bars after their occurrence, depending on the divergence lookback setting.

Utilizing Golden Pockets for Strategic Entries

The toolkit's MTF Golden Pockets feature is an essential tool for displaying Fibonacci retracements, helping traders identify Optimal Trade Entries (OTE) or defining key support and resistance levels. These are calculated using a lookback period defined in the Golden Pocket Lookback setting, where longer lookbacks reflect more extended-term divergences.

Configuring Your Trading Experience

Candle Coloring Options

• Candle Coloring: Choose between 'Simple' coloring, based on the candle body, or 'Golden Pocket' coloring, which uses a gradient based on rolling maximum/minimum values.

Fine-Tuning the Top-Down Volume Profile

• Top-Down Volume Profile: Enable this powerful feature to better understand market dynamics.
• Rows: Determine the number of rows in your volume profile for greater detail.
• Width (%): Adjust the width of the histogram bars as a percentage of the calculation window.
• Value Area (%): Specify the range of total volume for highlighting.
• Extend To The Right: Choose to extend the profile calculation to the current bar.

Optimizing MTF Divergences

• Oscillator: Select from RSI, MFI, or WaveTrend for divergence detection.
• Divergence Lookback: Set this to control how many bars after a pivot point divergences are detected.
• External Oscillator: Assign an external oscillator if preferred, noting it does not support MTF.
• Divergence Timeframe: Define the timeframe for detecting divergences.
• Divergence From: Decide if evaluations are based on wicks or body price.
• Filter According To POC: Use this to filter divergences relative to the POC.
• Show Hidden: An option to display hidden divergences.
• Show Sauce: Showcase the unique 'sauce can' divergence markers.

Maximizing Golden Pockets' Potential

• Golden Pocket Lookback: Choose the lookback period for pocket calculations.
• Extend: Extend your golden pockets lines for better visibility.
• Golden Pocket Timeframe: Set the timeframe for pocket calculations.
• Retracements: Control retracement display and adjust ratios as needed.
• Show Coordinate Line: Display lines connecting calculation tops/bottoms.
• Invert: Option to invert top/bottom calculations for diverse strategies.

FAQs

How can I access the Frankie Candles Essentials Toolkit?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

What are the benefits of using volume profiles in trading?

Volume profiles provide a visual representation of where trading activities are most concentrated, helping traders identify key support and resistance levels.

Can external oscillators be used for MTF divergence detection?

While external oscillators can be used within the toolkit, they do not currently support multi-timeframe (MTF) divergence detection like the built-in RSI, MFI, and WaveTrend indicators do.