The Kagi Chart is another Japanese chart which attempts to smooth out daily trading noise. Believed originated in the 1870s, the word Kagi was the typical L-shaped key we still use today.

The Kagi Chart (sometimes referred to as “key” charts by the Japanese) uses vertical lines to show market action; the asset supply and demand levels. If the market moves in the same direction as the former Kagi line, the line is lengthened. However, if the maket rises or falls more than a predetermined price, a new Kagi line is drawn in the next column in the opposite direction. As is true of Renko charts, Kagi are independent of time and only change direction once a predefined reversal amount is reached.

What Is Heikin-Ashi?

Heikin-Ashi is a type of candlestick chart which has a lot in common with normal, standard candlestick. It is different due to the values used to create each candle. Instead of the traditional OHLC (open, high, low, close) option for a candle a different formula is used.