HTF Reversals

The HTF Reversals indicator identifies high-probability trend turning points by analyzing pivot formations on higher timeframes such as Monthly, Weekly, and 3-Day intervals. It focuses on the logic of failed expansions and range reclaims to spot potential market reversals before they become obvious to the broader market.

Usage

The indicator monitors the chart for specific price action sequences that suggest a trend exhaustion. Users should first select their preferred higher timeframes (HTF) within the settings.

• Turtle Soup Detection: The script looks for "CR" (Counter-Trend) candles which are large-bodied candles indicating a strong expansion. It then waits for an "inside" candle, signaling a pause in momentum.
• Reversal Confirmation: You can enable engulfing confirmation to ensure the expansion has truly failed before a signal is generated.
• Trade Zones: Once a setup is validated, the indicator plots horizontal entry lines and colored boxes. The box represents the reversal zone, calculated using Fibonacci retracement levels (typically 0.382 or 0.618) relative to the HTF price action.
• Targets: Logical targets are automatically identified, usually corresponding to the high or low of the initial HTF expansion candle.

Details

Reversals rarely happen in a vacuum; they typically require a failed attempt to continue a trend followed by a reclaim of previous price levels. This tool codifies this behavior by looking for "CR" candles—defined as candles with bodies larger than the 20-period average body size (or specific quarterly logic for Monthly charts). The "Relief" pattern aspect of the script further refines these entries by identifying the specific pause (inside candle) and the subsequent shift in market structure (engulfing) on high-timeframe data, projecting those zones onto your current lower-timeframe chart.

Settings

• Turtle Soups: Toggles the primary reversal detection logic on or off.
• Dashboard: Displays a table on the UI summarizing the most recent signals across all active timeframes.
• Monthly / Weekly / 3-Day: Selects which higher timeframes the script should monitor for reversal patterns.
• HTF Relief Patterns: Enables an alternative logic focused on high-timeframe relief moves.
• Accent Color: Customizes the visual appearance of the dashboard and neutral elements.
• Custom alert message format: Allows users to define specific JSON or text formats for automated trading or notifications.

FAQ

How do I use the signals effectively? The signals are best used as a framework for identifying high-probability zones. Users should combine these zones with other technical analysis tools like volume or specific price action triggers for entries.

What do the boxes on the chart represent? The boxes represent the "reversal zone" or entry area. They extend for a duration proportional to the timeframe they were generated from, providing a visual guide for the expected play-out time.

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