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Kagi chart

A Japanese chart of vertical lines that change thickness when price breaks the prior swing, showing supply and demand shifts without time.

A Kagi line extends in the current direction as long as price keeps going. When price reverses by more than a set reversal amount, the line turns and moves sideways then in the new direction. When the line breaks above the previous swing high it thickens, called a yang line; when it breaks below the previous swing low it thins, called a yin line.

The thickness change is the signal: thick means demand has taken control, thin means supply has. Because the chart ignores time, long consolidations collapse into a small amount of horizontal space.

Kagi is rare in modern platforms and there is little robust evidence that its signals beat simpler swing-based rules. Treat it as a clean visualisation of swing-high and swing-low structure rather than a system in itself.

Related: renko-chart, point-and-figure

See it drawn

Original diagrams for the ideas on this page. Illustrative, not real market data.

Trend structure: higher highs against lower lowsTwo zigzag price paths side by side; the left one steps upward with each peak and trough above the last, the right one steps downward with each peak and trough below the last.UPTRENDhigher highs, higher lowsHHHHHHHLHLHLDOWNTRENDlower highs, lower lowsLHLHLHLLLLLLHH higher high, HL higher low, LH lower high, LL lower low.
How a trend is built. A trend is just a sequence of turning points. While each peak and each dip sits above the one before it the market is trending up; once both start landing below the previous ones the structure has turned down.

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