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Kagi Chart

Line-based chart ignoring time, focusing on price movement reversals.

Structure​

  • Vertical lines (yang) and horizontal turns (yin)
  • No time component
  • Line thickness changes with direction
  • Reversal based on predefined amount

Key Characteristics​

  • Thick lines: Bullish (uptrend)
  • Thin lines: Bearish (downtrend)
  • Horizontal segments: Reversal buildup
  • Vertical segments: Active trend

When To Use​

  • Long-term trend analysis
  • Noise filtering
  • Clear buy/sell signals
  • Support/resistance
  • Japanese charting traditions

Parameters​

  • Reversal amount: Price change to flip line (fixed or ATR-based)
  • Minimum reversal: Typically 4% or ATR multiple

Interpretation​

  • Thick to thin: Potential top, consider selling
  • Thin to thick: Potential bottom, consider buying
  • Long vertical: Strong trend
  • Many horizontals: Consolidation, volatility

Advantages​

  • Trend clarity
  • Noise reduction
  • Clear turning points
  • Objective signals

Disadvantages​

  • No time context
  • Lagging signals
  • Not for short-term trading

API​

chart.setChartType('kagi');

Strategy​

  • Buy when line turns thick
  • Sell when line turns thin
  • Ignore thin→thick during reversals
  • Use with time-based charts