Technical Glossary / Chart Types & Price Representation
Kagi Chart
A chart of vertical lines that reverse when price retraces a set amount, and that change thickness when the prior swing is broken.
Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
A Kagi line rises with price and turns down only after a reversal amount. The line is often drawn thick, called yang, after price exceeds the prior high, and thin, called yin, after price breaks the prior low. Time is not the axis.
How it works
The reversal amount can be fixed or a percent. Thickness is a state: it changes at the break of the previous swing extreme, not at every turn.
How to identify it
A continuous right-angled line, thick and thin segments, no candles and no dates. Turns are reversals of the chosen amount.
Bullish reading
A change from thin to thick is the traditional bullish turn: price has broken the prior swing high.
Bearish reading
A change from thick to thin is the traditional bearish turn: price has broken the prior swing low.
How traders use it
Kagi is another way to hold a swing filter in view. Use it beside a candle chart if you still need the real high, low, and time.
Common mistakes
Reading thickness as volume. Thickness is about the prior swing, not about how many shares traded.
Limitations
Like Renko, Kagi discards time and the interior of the move. A news spike can be a single kink.
This note explains the term. A sketch shows the shape of the idea. Neither is a recommendation, a signal, or a comment on any security. Indicator settings and exchange conventions differ. Check the live chart and the contract specification before you use a number.