Frankie Candles Essentials [LuxAlgo]

9 Jan 2024

The Frankie Candles Essentials toolkit is a collection of essential features used by trader Frankie Candles. This toolkit focuses on the relationship between MTF oscillator divergences and volume profiles, allowing the detection of different kinds of reversals. Retracements from the "Golden Pocket" features are also included.

🔶 USAGE

When adding the script to your chart you will be prompted to select the calculation interval of the "Top-Down Volume Profile", simply click on your chart where you want the starting and ending points of the calculation interval.



🔹Top-Down Volume Profile



The Top-Down Volume Profile is a classical fixed-range volume profile and highlights the amount of traded volume within equidistant price areas. The amount of areas is determined by the "Rows" setting (Note that the volume profile can use up to 250 rows).

The value area (VA) highlights the area where the specified percentage of the total volume is traded, that is the area with the most recorded trading activity relative to a selected percentage.

Finally, the point of control (POC) highlights the price level with the most trading activity.

🔹Divergences



Users can highlight divergences made by oscillators on their charts. The toolkit includes three indicators such as RSI, MFI, and WaveTrend with MTF support, users can also select external oscillators but these will not support MTF divergence detection.

Once the Top-Down Volume Profile is set historical divergences will be affected by its value area (VA), with bearish divergences located above the upper VA or bullish divergences located under the lower VA being highlighted with a sauce can, a signature display stel of Frankie Candles.



Users can also filter out divergences based on the point of control (POC) using the "Filter According To POC" setting, with bearish divergences located below the POC or bullish divergences located above it being filtered out.

Do note that divergences are detected N bars after their occurrence, where N is the divergence lookback setting

🔹Golden Pockets



The script includes an MTF Golden Pockets feature displaying Fibonacci retracements on the user chart, these can be used to identify optimal trade entries (OTE) or serve as support/resistance levels.

Golden Pockets are based on maximum/minimum prices in a window determined by the "Golden Pocket Lookback" setting, using longer-term lookbacks will return longer-term divergences, this will also be the case when using HTF golden pockets.

🔶 SETTINGS

🔹Candle Coloring

• Candle Coloring: Determine the candle coloring method used by the indicator. "Simple" will color the candles based on the candle body, while "Golden Pocket" will color candles using a gradient based on the golden pocket rolling maximum/minimum.
  

🔹Top-Down Volume Profile

• Top-Down Volume Profile: Enable Top-Down Volume Profile.
  
• Rows: Amount of rows used by the Top-Down Volume Profile.
  
• Width (%): Controls the histogram bar width as a percentage of the calculation window specified by the user set anchors.
  
• Value Area (%): Area where the specified percentage of total volume is traded.
  
• Extend To The Right: Extends the calculation window from the first anchor to the most recent bar.
  

🔹MTF Divergences

• Oscillator: Determines the oscillator and its length used for divergence detection. Options include "RSI", "MFI", "WaveTrend" and "External".
  
• Divergence Lookback: Lookback period used to track oscillator tops/bottoms. Divergence will be detected n bars after an oscillator top/bottom, where n is the specified lookback period.
  
• External Oscillator: External oscillator used for divergence detection if "External" is selected in the "Oscillator" dropdown menu, incompatible with Divergence Timeframe setting.
  
• Divergence Timeframe: Timeframe used to calculate the selected oscillator and detect divergences. Incompatible with external oscillators.
  
• Divergence From: Determines if price tops/bottoms evaluated to detect divergences are based on wicks (high/low price) or candle body (closing/opening price).
  
• Filter According To POC: Filter displayed divergences based on the Top-Down Volume Profile POC.
  
• Show Hidden: Display hidden divergences.
  
• Show Sauce: Display canned source emoji on specific divergences.
  

🔹Golden Pockets

• Golden Pocket Lookback: Period used to calculate golden pockets, options include "Short-Term", "Medium-Term", and "Long-Term".
  
• Extend: Extend Golden Pockets lines from the most recent bar by the specified amount of bars.
  
• Golden Pocket Timeframe: Timeframe used to calculate the Golden Pockets.
  
• Retracements: Display specific retracements, users can also control the ratio from the provided numerical setting.
  
• Show Coordinate Line: Display a line connecting the top/bottom used to calculate the Golden Pockets.
  
• Invert: Invert top/bottom for the Golden Pockets calculation.