Kagi Chart

Kagi Chart
Kagi charts originated in Japan like the Candlestick Charts. They are related to Renko and Three Line Break charts.

A Kagi chart consists of vertical lines that are connected by horizontal lines. The direction of the vertical lines is drawn depending on the price movements. The time relation, trading volume and chart information such as high and low prices are not taken into account.

Kagi charts display the bid and ask, i.e. the trend of the market.

Construction and Information in a Kagi Chart

In a Kagi chart, a vertical line is drawn as long as the current price direction is maintained. If a trend reversal takes place in the price development, the price has to be at least as large as the defined reversal amount to cause a trend reversal in the chart. In case of a trend reversal, a horizontal line is drawn to the next "column" and a vertical line is started in the other price direction.

The time elapsed is unimportant for this kind of charting. The time axis is not linear.

Increasing and decreasing prices are shown in different colors, e.g. black/red. The colors can be set in the properties.

When trading with Kagi charts, remember that the filtering effect inherent to the method leads to delayed signal generation.

General Chart Properties

When the chart is active, you can edit the chart properties in the toolbox, for example the history length, the axes and legends.

You can also

Content-Dependent Chart Settings

In the properties of the displayed stock (symbol), you can find additional parameters. Besides the Standard Properties, you can find specific parameters for this chart type.

Instrument Properties

Reversal - Enter a reversal value here. In case of a trend change, the price has to move by at least the reversal amount before a new vertical line in the opposite direction is drawn in the Kagi chart.

Kagi Properties

Bullish Color - Here you can select a color for the bullish line.

Bullish Width - Here you can set a bullish line width by entering a number.

Bearish Color - Here you can select a color for the bearish line.

Bearish Width - Here you can set a bearish line width by entering a number.

Links and Books

Beyond Candlesticks - Steve Nison