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The\u00a0Kagi chart<\/strong> is a\u00a0chart used for tracking price movements and to make decisions on purchasing\u00a0stock. It differs from traditional\u00a0stock charts, such as the\u00a0Candlestick chart\u00a0by being mostly independent of time. This feature aids in producing a chart that reduces\u00a0random noise.<\/p>\n Due to its effectiveness in showing a clear path of price movements, the Kagi chart is one of the various charts that investors use to make better decisions about stocks. The most important benefit of this chart is that it is independent of time and change of direction occurs only when a specific amount is reached. <\/p>\n Kagi charts look similar to swing charts and do not have a time axis.\u00a0A Kagi chart is created with a series of vertical lines connected by short horizontal lines. The thickness and direction of the lines is based on the price of the underlying stock or asset, as follows:<\/p>\n Alternatively, thin and thick lines can be replaced with lines of different colours, such as the green\/red example in the figure.<\/p>\n <\/a><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n Changes in line thickness are used to generate transaction signals. Buy signals are generated when the Kagi line goes from thin to thick and sell signals are generated when the line turns from thick to thin.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Kagi Charts The\u00a0Kagi chart is a\u00a0chart used for tracking price movements and to make decisions on purchasing\u00a0stock. It differs from traditional\u00a0stock charts, such as the\u00a0Candlestick chart\u00a0by being mostly independent of time. This feature aids in producing a chart that reduces\u00a0random noise. Due to its effectiveness in showing a clear path of price movements, the Kagi […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":74,"menu_order":4,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_mi_skip_tracking":false},"yoast_head":"\n
\nThe Kagi chart was originally developed in Japan during the 1870s when the Japanese stock market started trading. It was used for tracking the price movement of rice and found use in determining the general levels of supply and demand for certain assets.<\/p>\nConstruction<\/span><\/h2>\n
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How to plot a Kagi chart<\/h3>\n
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Continue to the next Lesson<\/a><\/h2>\n