# HTF Reversal Divergences HTF Reversal Divergences is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Flags potential turning points by pairing higher timeframe reversal candles (engulfing patterns and pin bars) with regular RSI divergences, and can project the developing HTF candle beside live price with its running delta (Show HTF PO3, off by default). Built for traders who execute on fast charts but want each entry checked against higher timeframe structure and momentum. - Indicator in the LuxAlgo Library, by LuxAlgo, published Mar 11, 2026. - Access: free. - Concepts: [Regular Bullish/bearish Divergence](https://www.luxalgo.com/library/concept/regular-bullish-bearish-divergence/) (primary), [Reversal](https://www.luxalgo.com/library/concept/reversal/), [Top-down Analysis](https://www.luxalgo.com/library/concept/top-down-analysis/) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn27p10030vhsg7u4u35uz - Page: https://www.luxalgo.com/library/indicator/htf-reversal-divergences/ **HTF Reversal Divergences** hunts turning points by checking three things at once: higher timeframe reversal candles, [regular bullish and bearish divergences](https://www.luxalgo.com/library/concept/regular-bullish-bearish-divergence/) on RSI, and a live projection of the developing HTF candle. Engulfing patterns and pin bars detected on your chosen higher timeframe are boxed and labeled directly on the execution chart, so a five-minute entry can be weighed against what the hourly or four-hour candle is actually doing. ## How to Trade the HTF Reversal Divergences? - **HTF engulfing candle**: one candle fully overlaps the prior body in the opposite direction, a possible shift in control. - **HTF pin bar**: hammers and shooting stars, defined by a wick of at least 60% of the candle's range, marking rejection. - **Bullish divergence**: price dips to a lower low but RSI bottoms higher, downside momentum fading. - **Bearish divergence**: price stretches to a higher high but RSI tops lower, the upside push weakening. - **PO3 projection**: the developing HTF candle with its OHLC levels, running delta, and dashed guides back to the bars that set each level. The strongest setups stack several of these at once: a higher timeframe pattern, a matching divergence, and a projected candle that has already run its extreme. One signal alone is a prompt to pay attention; confluence is where a [reversal](https://www.luxalgo.com/library/concept/reversal/) trade gets its structure. ## HTF Reversal Divergences Settings - **High Timeframe**: the timeframe used for pattern detection and the candle projection. - **Show Engulfing Patterns** / **Show Pin Bars**: toggle each reversal pattern class. - **Show RSI Divergences**: shows or hides the divergence lines and labels; detection itself keeps running. - **RSI Length**: the calculation period behind the divergence engine. - **Pivot Lookbacks**: pivot sensitivity, shorter for earlier signals, longer for cleaner ones. - **Show HTF PO3**, **Candles to Show**, **Right Offset**: control the projection block and its history. ## Frequently Asked Questions ### When is a signal considered confirmed? HTF patterns are evaluated only on completed higher timeframe candles and drawn as the next HTF candle opens, so there are no mid-bar pattern detections and a printed pattern does not change. RSI divergences are confirmed a set number of bars after the pivot (Pivot Right Lookback, 5 by default) and drawn back at the pivot bar; a divergence is final once that confirming bar closes. ### I only want the candle projection. Is there a dedicated tool? Yes. [HTF PO3](https://www.luxalgo.com/library/indicator/htf-po3/) is the standalone build of that module, with the same origin-line mapping and running delta but no pattern or divergence detection layered on top. ### How do I get HTF Reversal Divergences? It is one of the free tools in the LuxAlgo Library. This page also pipes it through to Quant, our coding agent, when you want to experiment on live data right away. You can also copy the source code from this page and run it anywhere Pine Script® runs. ## Related indicators - [Oscillator Matrix](https://www.luxalgo.com/library/indicator/luxalgo-oscillator-matrix/) (Regular Bullish/bearish Divergence): markdown at https://www.luxalgo.com/library/indicator/luxalgo-oscillator-matrix.md - [LuxAlgo - Screener (OSC)](https://www.luxalgo.com/library/indicator/luxalgo-screener-osc/) (Regular Bullish/bearish Divergence): markdown at https://www.luxalgo.com/library/indicator/luxalgo-screener-osc.md - [RSI Candlestick Oscillator](https://www.luxalgo.com/library/indicator/rsi-candlestick-oscillator/) (Regular Bullish/bearish Divergence): markdown at https://www.luxalgo.com/library/indicator/rsi-candlestick-oscillator.md - [RSI Divergence: Out-of-Sample Optimizer](https://www.luxalgo.com/library/indicator/rsi-divergence-out-of-sample-optimizer/) (Regular Bullish/bearish Divergence): markdown at https://www.luxalgo.com/library/indicator/rsi-divergence-out-of-sample-optimizer.md - [Triangular Momentum Oscillator & Real Time Divergences](https://www.luxalgo.com/library/indicator/triangular-momentum-oscillator-real-time-divergences/) (Regular Bullish/bearish Divergence): markdown at https://www.luxalgo.com/library/indicator/triangular-momentum-oscillator-real-time-divergences.md - [Reversal Signals](https://www.luxalgo.com/library/indicator/reversal-signals/) (Reversal): markdown at https://www.luxalgo.com/library/indicator/reversal-signals.md - [Reversal Candlestick Structure](https://www.luxalgo.com/library/indicator/reversal-candlestick-structure/) (Reversal): markdown at https://www.luxalgo.com/library/indicator/reversal-candlestick-structure.md - [HTF PO3](https://www.luxalgo.com/library/indicator/htf-po3/) (Top-down Analysis): markdown at https://www.luxalgo.com/library/indicator/htf-po3.md --- Source: https://www.luxalgo.com/library/indicator/htf-reversal-divergences/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/