Kagi charts are a form of technical analysis that are used to identify support and resistance levels on a price chart. They were initially developed in the late 19th century by a Japanese rice trader, Homma Munehisa. Although the Kagi chart has been around for more than a hundred years, these charts don’t get much attention in the Western world.

Kagi charts are used to identify/track both current and long-term support and resistance levels on a price chart. Unlike other charting methods such as Heiken Ashi and Ichimoku, Kagi charts use time to measure changes in the price of something. This means that the Kagi chart never produces doji-like patterns or false signals that are commonly found in other charting methods. The thick/thin lines can be interpreted as a signal for buying and selling, but usually long-term market trends are more relevant.

In a Kagi chart, a line is drawn from a point where a fixed amount or percentage of money or any other asset either increases or decreases. When the price moves above the prior Kagi high, the line turns thick and when the price drops below the prior Kagi low, the line turns thin. The thickness of the line is an indication of a trend; the thicker the line, the stronger the trend, and vice versa.

Kagi charts can be used in any market, be it stocks, forex, futures; any asset that is quoted, can be analyzed with a Kagi chart. It is particularly useful when trying to identify long-term trends in markets that are normally more volatile in nature, such as crypto-currencies, commodities, and other assets.

Kagi charts are a great tool for traders because of their focus on long-term trends. The combination of long-term trend data and Kagi charts can help traders make better-informed trading decisions, regardless of the market.