A Japanese charting method that uses vertical lines to show supply and demand dynamics, ignoring time altogether. Kagi charts change direction when prices reverse by a predetermined amount, making them useful for identifying trend reversals and key support and resistance levels.
Example
“For example, a Kagi chart of gold might show a thick rising line as long as price makes new highs, then switch to a thin falling line when price reverses by $20, signaling a potential trend change.”