The Kagi chart is a chart used for tracking price movements and to make decisions on purchasing stock. It differs from traditional stock charts, such as the Candlestick chart by being mostly independent of time. This feature aids in producing a chart that reduces random noise.
Due to its effectiveness in showing a clear path of price movements, the Kagi chart is one of the various charts that investors use to make better decisions about stocks. The most important benefit of this chart is that it is independent of time and change of direction occurs only when a specific amount is reached.
The Kagi chart was originally developed in Japan during the 1870s when the Japanese stock market started trading. It was used for tracking the price movement of rice and found use in determining the general levels of supply and demand for certain assets.
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“Perhaps in His wisdom the Almighty is trying to show us that a leader may chart the way, may point out the road to lasting peace, but that many leaders and many peoples must do the building.”
—Eleanor Roosevelt (1884–1962)