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Kagi Charts

Kagi charts visually represent assets' price movement using vertical lines. The direction and thickness of the lines in Kagi charts depend on the price movement. A thick line indicates increased demand when the price breaks above the previous high, whereas a thin line represents increased supply when the price falls below the previous low. Unlike other financial charts, Kagi charts do not factor over time, allowing traders and investors to focus solely on significant price movements and market trends.

Sample Table Format

DatePrice DirectionLine Thickness
2022-01-01 100UpThick
2022-01-02 95DownThin
2022-01-03 100UpThick
2022-01-04 100UpThick
2022-01-05 100DownThin

In this example, each row represents a specific date and price point, with a column for the direction (up or down) and line thickness (thick or thin) based on the price movement relative to the previous high or low.

Best Practices for Using Kagi Charts

  • Choose the right time frame: Kagi charts can be used for any time frame, but they are most effective for longer-term trends. Choose a time frame best suits your data and the insights you want to convey.
  • Label your chart: Clearly label your Kagi chart with the asset's name and displayed time frame. This helps viewers understand the data and the context in which it was generated.
  • Avoid over-analyzing: Kagi charts are best used for identifying long-term trends rather than short-term fluctuations. Avoid over-analyzing the chart or trying to make predictions based on short-term movements.