Search Investopedia

Kagi Chart

Filed Under » , ,
Dictionary Says

Definition of 'Kagi Chart'

A type of chart developed by the Japanese in the 1870s that uses a series of vertical lines to illustrate general levels of supply and demand for certain assets. Thick lines are drawn when the price of the underlying asset breaks above the previous high price and is interpreted as an increase in demand for the asset. Thin lines are used to represent increased supply when the price falls below the previous low.

Kagi Chart
Investopedia Says

Investopedia explains 'Kagi Chart'

An entry signal is triggered when the vertical line changes from thin to thick and is not reversed until the thick line changes back to thin.

One important note about these charts is that they are independent of time and only change direction once a predefined reversal amount is reached.

Related Definitions

  •

    Supply

    A fundamental economic concept that describes the total amount of a specific good or service that is available to consumers. Supply can relate to the amount available at a specific price ...
    Read More »

  • Demand

    An economic principle that describes a consumer’s desire and willingness to pay a price for a specific good or service. Holding all other factors constant, the price of a good or service ...
    Read More »

  • Reversal Amount

    The amount of price movement required to shift a chart to the right. This condition is used on charts that only take into consideration price movement instead of both price and time.
    Read More »

    • Support (Support Level)

      The price level which, historically, a stock has had difficulty falling below. It is thought of as the level at which a lot of buyers tend to enter the stock. Often referred to as the ...
      Read More »

    • Resistance (Resistance Level)

      The price at which a stock or market can trade, but not exceed, for a certain period of time. Often referred to as "resistance level".
      Read More »

    • Line Chart

      A style of chart that is created by connecting a series of data points together with a line. This is the most basic type of chart used in finance and it is generally created by ...
      Read More »

    • PERT Chart

      A project management tool that provides a graphical representation of a project’s timeline. PERT, or Program Evaluation Review Technique, was developed by the United States Navy for the ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions