Kagi Chart

Kagi Chart is traditional Japanese charting technique consisting of vertical lines that change direction only when price reverses by certain amount. Kagi ignores time, focusing only on price movement, using line thickness to show trend strength.

Types

Kagi charts highlight major trends and key turning points by filtering minor fluctuations. Thick lines indicate uptrend, thin lines indicate downtrend; line thickness changes are important trend signals. Kagi is particularly suitable for identifying trend continuation and reversal. Waists (line thickness change points) are important support/resistance levels. Many traders use Kagi to identify major trends, then seek entries on traditional candlestick charts. Kagi reversal amount setting needs adjustment based on market volatility.