Kagi Charts for MT4
In this article, we present a modified technical indicator for Metatrader 4 that allows displaying Kagi charts on the regular price charts of this platform. Therefore, it allows traders to correct the deficiency that Metatrader presents in terms of less common types of charts such as the Kagi, whose popularity is increasing day by day due to its advantages, which we will describe later.
The indicator consists of a simple .mq4 file and is installed and used like any other indicator for MT4. As shown in the following image, the Kagi chart appears in a window below the price chart, allowing to contrast both:
- Porog – Reversal coefficient as a percentage. The trader can modify this parameter according to his requirements.
What are Kagi charts and their benefits?
Kagi Charts are supposed to have appeared in the 70s of the 20th century, in the early stage of development of the stock market in Japan. The Kagi Charts represent a series of interconnected vertical lines. The thickness and direction of the increase in these lines are determined by price dynamics. Kagi Charts do not take into account the time factor, which differentiates them from the types of price charts developed in the West.
If the price is moving in the same direction, the vertical line on the chart gets longer. If the price changes direction by a predefined value (investment coefficient), a new vertical line in a new column is drawn on the chart. The thickness of the Kagi lines changes when prices exceed their previous high/low values.
The Kagi Charts have been introduced in the United States and other parts of the world thanks to Steve Nison’s book “Beyond the Candlesticks“.
The Kagi Charts illustrate how the demand and supply forces act. A sequence of thick lines indicates that the demand is higher than the supply (the market increases).
A sequence of thin lines means that the supply is higher than the demand (the market falls). The formation of thick and interspersed lines indicates that the market is balanced (supply equals demand).
The basic trading signals with a Kagi chart are based on line thickness: If a thin line becomes thick, the trader must buy, if a thick line becomes thin, then he must sell.
A sequence of rising highs and lows speaks to the power of the up move, while a series of declining highs and lows indicate weakness in the market.
Download and installation of Kagi chart indicator for MT4
You can download the indicator together with the template through the following link:
The indicator consists of the following files:
The KAGI_1.mq4 file should be placed in the /MQL4/Indicators folder of the Metatrader 4 installation on the computer. To activate the indicator, the platform must be restarted.