Kagi Chart is one of forex technical indicator used by many traders in forex technical analysis. Kagi Chart correspond a number of vertical lines tied to each other.

Kagi Chart was developed by the Japanese in the late 1800s. Kagi charts are similar to point and figure charts in that it is not time based, but is dependent upon the price movement of the security to print a new line on the chart.

From the first closing price, if today’s price is greater than or equal to the closing price, draw a thick line from the closing price to today’s closing price, otherwise draw a thin line from the closing price to the new closing price.

Subsequently, compare the closing price to the top or bottom of the previous kagi line. A new kagi line is started if price reverses by a set ‘reversal amount’ to the new closing price, otherwise no lines are drawn.