what does a kagi chart tell you 
on the 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 like any other chart these signals should be filtered based on other fundamental or technical criteria as simply buying or selling every time time kagi chart switches from thick to thin could prove costly and unprofitable the line turns thick when a new high is made if the line was thin the line stays thick as long as a new low isn t made the line turns thin when a new low is made and stays that way until a new high is made turns thick the kagi chart will move up and down as the price moves by the reversal amount or more these charts are independent of time and only change direction once a predefined reversal amount is reached the reversal amount is discussed below kagi charts having no regard for time have the advantage of reducing noise noise is a particular drawback of traditional candlestick charting methods because a change in price direction occurs only after a specific threshold is reached some traders may find kagi charts useful in terms of isolating the trend and viewing direction more clearly depending on the trading or charting platform used the kagi chart line may not be thin or thick but rather colored such as red and green the color changes signal a drop below a recent high or low kagi chart reversal amounta kagi chart will reverse direction when the price has moved the other direction by a specified amount or more assume a trader is trading apple inc aapl and they want the chart to show when there is a 10 reversal a kagi chart can show that if the kagi chart and price is moving higher to 300 the kagi will not reverse until the price drops below 290 if the price rises to 350 the kagi won t reverse until the price drops below 340 if the price falls to 340 the kagi will not reverse higher until the price moves back above 350 the 10 reversal is a moving target the 10 reversal can be based on closing prices or highs and lows the reversal amount doesn t need to be a fixed amount it can also be based on average true range atr which means the reversal amount will change as volatility changes 