Forex Chart Type : Kagi

No comment 317 views

Charts KAGI can also add to the treasury of knowledge of traders in addition to knowing the 3 types of popular graphics (line, bar and candle). The KAGI chart originated in Japan, in the 1870s, where KAGI was developed to track the movement of rice prices. They are very similar to the Point and Figure charts (P & F) and Renko charts because they are time dependent and only move when the closing price of the pair or stock has risen or fallen from a predetermined value. In the case of the Kagi chart, the same long vertical line segment is drawn for each multiple of a predetermined amount whose price is closed for a certain period of time. If the price does not move at least a predetermined amount, no line segment is drawn and if the price reverses to a predetermined amount, the short horizontal line is drawn to the next column and the line in the new direction is withdrawn. The horizontal line that joins the line that goes up to the descending line is called the “shoulder” and the horizontal line joining the descending line to the rising line is called “waist”.

forex signals

Forex Chart Type Kagi

When the line in the opposite direction moves beyond the shoulder or waist, that is, when it exceeds the length of the line in the previous column, changes the thickness, which indicates a trend reversal. So, when the line moves downwards past the previous waist, it becomes a thin line called the yin line. And when the line moves upward moves beyond the previous shoulder, it becomes a thick line called the line. The bold lines show a bullish trend (upside while the thin yin line indicates a bearish trend) The change from yin to yang and from yang to yin is used to generate trading signal.

forex signals

Forex Chart Type Kagi

The number of reversals used to create a Kagi chart can be determined by using absolute points, fixed percentages, or Average True Range (ATR).

Support and resistance lines, trend lines and other graphical pattern analysis techniques can also be applied to the Kagi chart.

Maybe this is not a common or popular graph to use but it seems good to identify a reversal.

forex signals

Forex Chart Type Kagi

author
Forex4Live.com is a forex trading system website that started to be published since 2011 and has been used by thousands of traders around the world. The system is very simple and accurate, priced at $ 167 for a lifetime membership with no monthly fees or hidden fees. Our team created this system by testing thousands of indicators then selecting 23 indicators and combining them into one great trading system.
No Response

Leave a reply "Forex Chart Type : Kagi"