Kagi and Renko charts
- Thread starter manojsai
- Start date
Kagi Charts
Kagi charts are believed to have been created around the time that the Japanese stock market began trading in the 1870s. Kagi charts display a series of connecting vertical lines where the thickness and direction of the lines are dependent on the price action therefore ignoring the passage of time.
If prices continue to move in the same direction, the vertical line is extended. However, if prices reverse by a "reversal" amount, a new kagi line is then drawn in a new column. When prices penetrate a previous high or low, the thickness of the kagi line changes.
Kagi charts illustrate the forces of supply and demand on a security: a series of thick lines shows that demand is exceeding supply (a rally) while a series of thin lines shows that supply is exceeding demand (a decline).
Renko charts are similar to Three Line Break charts except that in a Renko chart, a line is drawn in the direction of the prior move only if a fixed amount (i.e., the box size) has been exceeded. The bricks are always equal in size. Example: With a five unit Renko chart, a 20 point rally is displayed as four equally sized, five unit high Renko bricks.
stockcharts.com which is free gives support for both charts.
Kagi charts are believed to have been created around the time that the Japanese stock market began trading in the 1870s. Kagi charts display a series of connecting vertical lines where the thickness and direction of the lines are dependent on the price action therefore ignoring the passage of time.
If prices continue to move in the same direction, the vertical line is extended. However, if prices reverse by a "reversal" amount, a new kagi line is then drawn in a new column. When prices penetrate a previous high or low, the thickness of the kagi line changes.
Kagi charts illustrate the forces of supply and demand on a security: a series of thick lines shows that demand is exceeding supply (a rally) while a series of thin lines shows that supply is exceeding demand (a decline).
Renko charts are similar to Three Line Break charts except that in a Renko chart, a line is drawn in the direction of the prior move only if a fixed amount (i.e., the box size) has been exceeded. The bricks are always equal in size. Example: With a five unit Renko chart, a 20 point rally is displayed as four equally sized, five unit high Renko bricks.
stockcharts.com which is free gives support for both charts.
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