Kagi on price chart

Kagi on price chart

Kagi is a type of graphic representation that comes from Asia. This type of price chart is distinguished by the fact that one draws a Kagi type graph taking into account only the price. Indeed, even if time is represented on the abscissa axis, the time scale is not linear. This type of chart is convenient to follow the trend.

The horizontal lines have no real meaning, their role is to give continuity to the price. These horizontal lines are called inflection lines.

Two variables stand out with the Kagi, the color and the sense of the lines. These two variables depend on the direction of the market:

  • The line is again in the same direction and the same color as the previous line when prices go in the same direction.
  • The color remains the same, but the direction of the line is opposite when the prices exert a reversal of a fixed amount in advance (we speak of threshold of reversal).
  • The color and the direction of the line change when there is a break of a lower or higher observed in the past.

There are two methods of using Kagi:

  1. We buy when there is a turnaround and sell when there is a downturn. In other words, color changes are buying and selling signals.
  2. We expect confirmation of two or three breaks higher or lower after a change of color to switch to the long or short order.

In this indicator you can choose which type of reversal you want: a percentage amount of price , or a fix points/pips amount. Set one of the reversal setting to 0 will deactivate it to use the other one.


Share this

Risk disclosure:

No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.

ProRealTime ITF files and other attachments : How to import ITF files into ProRealTime platform?

New! PRC is also now on YouTube, subscribe to our channel for exclusive content and tutorials

  1. asbah247 • 155 days ago #

    hi nicolas.. how ru.. can u help me code ross hook for tradingview#

    • Nicolas • 155 days ago #

      Hi, we do not offer free assistance for tradingview programming. You can send us a query to the programming services: https://www.prorealcode.com/trading-programming-services/

  2. jobswaps • 151 days ago #

    Hola has un indicador donde trase una linea de tendencia con uniendo los maximos de un mes y otro con los minimos de un 1 mes y tambien que se por barras o velas

    • Nicolas • 150 days ago #

      Por favor haga preguntas en nuestros foros. Abra un tema individual para cada una de sus solicitudes.

  3. Jan Wind • 150 days ago #

    “There are two methods of using Kagi:
    We buy when there is a turnaround and sell when there is a downturn. In other words, color changes are buying and selling signals.”

    I will give it a try to develop a trading strategy based upon the advice above for buying and selling, I do this for the DAX index, and I will use 5 minutes, and with confirmation of the higher MTF of 10 minutes,
    For example coded as Buying when the Kagi in 5 min MTF is minimal equal to the previous bar (turning point) and the Kagi in the 10 min MTF is minimal equal to the previous 10 min bar and smaller then the 5 min Kagi (confirmation), with opening only in morning hours. See if that will deliver profitable trades.
    Or the other way around, for example coded as Buying when the Kagi in 10 min MTF is minimal equal to the previous bar (turning point) and the Kagi in the 5 min MTF is minimal equal to the previous 5 min bar and the 5 min Kagi > 10 min Kagi (confirmation), with opening only in morning hours. See if that will deliver profitable trades.

    • Nicolas • 149 days ago #

      Thanks, let us know how it is going?

  4. Jan Wind • 137 days ago #

    Hallo Nicolas,

    I have tested the pre-mentioned concept, and had to change the concept :
    1. buy when Kagi is greater then the previous Kagi AND ( for a higher timeframe Kagi is greater then previous Kagi or Kagi is equal to previous Kagi ). Vice versa for selling. I used time frames of 3 minutes and 6 minutes and 2 minutes and 4 minutes
    2. buying between 8 and 15 hr CET, no more then 2 opening transactions per day, regardless in the market with a position or not
    3. add a trailing stop, which is the exit strategy and a stop-loss to protect significant losses.
    4. I varied with the ReversalAmountPercent and the trailing stop, the smaller timeframes, the greater the reversal% seems to be for best results.

    Good and relative steady profits seems to appear for the indices, it seems not to work with currencies.
    Disadvantages of the strategy is that the trades are for a long time in the market (interest costs for ETFs) and only a few trades are generated ( +/- 40 in a year) , which reduces reliability significantly.

    But overall promising !
    Kind regards, Jan

Register or


avatar avatar avatar avatar avatar avatar avatar
Related users ' posts
Nicolas Use the color variables R and G to test if the trend is bullish (R=0) or bearish (R>0).
s00071609 Where can i find the syntax to test the colour of the line, I am calling the indicator value...
Nicolas You should open a new topic to discuss about the strategy and its coding.
Sukhdev Golen Hi Nicolas, how to use this on tradingview?
Nicolas You can't. All codes here are made for the ProRealTime trading platform: https://www.proreal...
anthon Salut à tous et merci !
Varadero54 Bonjour Anthon ... pourrais-tu me communiquer l'adresse ou le nom de ta chaine YOUTUBE ... j...
cedric croze a premiere vue la chaine youtube n'éxiste plus
Wilko Thanks for the idea! This type of scoring can really help in not only identifying regimes ...
Vonasi Thanks for the compliments Wilko.
Alai-n @Vonasi Thanks
jiddan78 how to convert to afl amibroker ?
Nicolas We do not supply free coding assistance for AFL Amibroker on the website. You can ask for pa...
camporan You can use it 5M onwards, but the longer timeframe the more accurate it is. My preferred ar...
manchokcity can we have it in mql4 platform? or how or which platform do we use it?
camporan I don't use MetaTrader so I won't be able to do the translation myself. Sorry!
riz001 thnk u
geroniman bonjour Nicolas, j ai un indicateur le Tiger . J aiemrai placer des fleches buy et sell dire...
Nicolas Merci de formuler les demandes sur le forum. ça n'est pas le bon endroit et hors sujet ici ! ;)
GraHal Is there a switch to start / stop the Trailing SL / TP as when I GRAPH SL & TP neither a...
robertogozzi No GraHal, there's no topic open. It would be great if you could start one and post that lin...
GraHal Discussion Topic started here ... https://www.prorealcode.com/topic/discussion-re-auto-sy...
umebon Tnx for sharing!! Can someone help me how i can call for the mydayhigh and mydaylow for to u...
LucioleLucide Clean view, thanks for sharing
dertopen hi where i can found the window for candle configuration?
coscar Ottimo lavoro. come sempre!
luxrun Nello studio di Sepiashvili viene descritto anche un altro indicatore, il Q-indicator, che è...
Maik2404 wie kann ich den Code bekommen Paul?
jens_kittner Works with US Crude at 1h as well!
Jean-Claude REGIS Je préconise de regarder les graphiques H1 et M15 pour visualiser la tendance de fond et d'...
capgros Bonjour @Nicolas, Thanks a lot for this tool, it is very useful for me. I would like to s...
Hans63 Would you add the possibility to color also the Heikin Ashi and bar chart?
Nicolas That's possible, please open a new topic in the indicator forum explaining what you need exa...
1 year ago
JvdG I meant of course: since ld56 is one of the constituents of ld48;
Nicolas You are right about ld56. Since this is a translation from another programming language, I d...
Florian Legeard C’est à dire sur le prix et non sur le temps ? Merci
cfta Hi Fulvio, many thanks for sharing this clever indicator, much appreciated. As Pepsmile ment...
cfta Sorry adding the PRT to code didn't work in the above comment so I guess we will have to set...
juanj Something appears to be wrong with this formula as graphing t shows t to almost never be wit...
Maxime Baudin Interesting, Thank you! :)
franck-david Bonjour Nicolas , actuellement je me forme grace a vos videos tres tres bien expliques mer...
Nicolas Merci. ça n'est pas le lieu pour poser ce genre de question :) Merci d'utiliser le forum Pro...
Vonasi Discussion on this indicator/filter can be found here: https://www.prorealcode.com/topic/121...
pableitor Hola Domenec, un indicador muy original y util que ciertamente añade mucha informacion a la ...
Domenec Hola Pableitor porque aqui lo que pretendo es programar un nuevo codigao mas ajustado para q...
Juanjo Hola Domenec. He visto en los videos que hablas continuamente de mercado de futuros con grá...
Geronima Ortiz I watched the video three times, but I can not put the npips parameter as a variable. I do...
Geronima Ortiz I think the video is for an old version of prorealtime, the images do not correspond at all ...
Nicolas indicator1 = CALL “PRC_StopReversal”[npips, 1] and define npips in the optimization window ...