HTF Reversal Divergences
By LuxAlgoMar 11, 2026
HTF Reversal Divergences is an indicator on Vela, our next-generation charting platform, written in Pine Script®.
HTF Reversal Divergences hunts turning points by checking three things at once: higher timeframe reversal candles, regular bullish and bearish divergences 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 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
Free to use
Run it on Vela. Go further with a paid plan.
- Up to 500 strategy alerts, with webhook automation
- Up to 10× the chart history of Free
- Orderflow lookback up to full history
- More Quant usage to customize it, plus extra usage when you need it
- Futures data alongside crypto, stocks, forex and commodities
Also works on
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All 6 Regular Bullish/bearish Divergence indicators
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