image using for identifying title kagi chart
this image using for kagi chart

Basics

the kagi chart is a invented by Japanese for rice trading and commodity trading. Kagi chart basically using price break process for better understanding market trend.

Chart Type :- Price Following and Price breakout process (Not For Time Accuracy)

Market’s :-  very useful for all market’s.

Best work :- Trending Market condition’s.

Formula

This chart formula & settings depending on what you want basically working with 2 type conditon.

(1) – If are using this chart set a percentage for trend follow. Default 4% figure using in this this chart its means price high 4% chart line starting drown line upside and price drop 4% chart line starting line drown downside.

(2) – Second Part is very important because you know kagi chart working with setting of percentage but kagi chart not show immediately trend reversal this chart using concept like swing trading. If Previous swing breakout upside kagi chart line showing green (its mean uptrend starting) and swing breakout downside kagi chart start showing red line (its mean downtrend starting).

Parameters
Defaults period used for the kagi chart calculation is 4%. This setting easily available change your convenient.

You can also select colors upper and lower lines by selecting and defaults using green color for (uptrend) and red color for downtrend.

Theory

The kagi chart show trend direction’s clearly but this chart not give you trend strength in the market. It gives buy or sell signals when price crosses the swing like swing trading concept. chart line start showing green line its mean very good buy signal and chart line start showing red line its mean very good sell signal. This chart give you noise free buy and sell signal’s for better decision’s. This chart very good working with another indicator’s like – RSI , Stochastic , Volume , Macd , CCI.

this image using for kagi chart interpretation
kagi chart line start showing green line its mean very good buy signal and chart line start showing red line its mean very good sell signal

Benefit’s

1.) Its noise Free no any unwanted noise like – candlestick chart .

2.) Help you find bottom point and high point in the market.

3.) Very good beneficial in trending market.

4.) Help you headache free trading decision.

5.) Very good working with trend strength indicator’s.

Non Beneficial

1.) Not give you trend strength.

2.) Not good working choppy market’s.

3.) Not give you clear cut price action’s.

For better understand watch trading chanakya youtube video.

1 COMMENT

  1. good chart but always late to knowledge and when optimizing the trend till the time we just look the loss or the long-term

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