Kagi chart with Bollinger Bands

[Pekelo]

I do find value in using the Kagi charts, not alone but in addition to my already existing charts. Some of the top/bottoms were right on when the Kagi touched the BB, although the normal price already went through the BB.

But the live chart is not as easy to use as it looked at the end of the day when I evaluated the day's movements.

 

[murray t turtle]

I have actually looked at it, but it was years ago and (perhaps unwisely) I didn't give it very long or take it particularly seriously, and certainly never did any proper backtesting with it.

As I remember it works on a very similar principle to "point and figure" charting (in which I'm a little more interested, I admit), in that a change of direction occurs on the chart only after a price-movement of a pre-specified magnitude has occurred. I think that's the "key concept", anyway?

I'd certainly be interested to hear more on the subject, when you've looked some more!

I have actually looked at it, but it was years ago and (perhaps unwisely) I didn't give it very long or take it particularly seriously, and certainly never did any proper backtesting with it.

As I remember it works on a very similar principle to "point and figure" charting (in which I'm a little more interested, I admit), in that a change of direction occurs on the chart only after a price-movement of a pre-specified magnitude has occurred. I think that's the "key concept", anyway?

I'd certainly be interested to hear more on the subject, when you've looked some more!

%%
I like the idea and ADX; not that i wanted to do that, but since it takes all kinds to make a market, fine

 

[Pekelo]

Well, Kagis are very good to keep one in a trend. It reminds me the green light/red light trading room back 10 or so years ago.

Anyhow, the general idea is the bigger the time frame the longer swings you catch. With this volatility I am surprised we don't have more discussions on this...

 

[Pekelo]

This morning:

Now it is not as easy as it seems to use Kagi charts. In a sideways market there are false signals left and right. But when there is a trend, Kagi is your friend...

Edit: It is giving the buy signal now, at 83. So was good for 47 points, blindly following it...

 

[Handle123]

I don't trade KAGI, always preferred to know when bars end, am too old school chartist.
I checked out Kagi some time ago, I favor it to be more of an exit indicator or counter-trend for support and resistance, like parabolics, chop you to death often, but it is decent to use after you gone to breakeven plus a tick.
So to make a beginning system out of this:
I be looking for small breaks which sort of gives rounding affect after a good run often spells end of that trend and possible beginning of new trend. Kagi nice as P&F charting, shows support and resistance well, for trend be more of chart patterns, wedges, triangles, diamonds etc...moving averages would be more be more of counter-trend waiting for trend traders to come to feed them losses.

 

[Handle123]

Well, Kagis are very good to keep one in a trend. It reminds me the green light/red light trading room back 10 or so years ago.

Anyhow, the general idea is the bigger the time frame the longer swings you catch. With this volatility I am surprised we don't have more discussions on this...

The problem I see using this "method" is risk too great by time most would be entering as you be using risk on the other side. It is good for support and resistance and chart patterns but against the breakouts you looking at $500 risk, why am opposed to breakout and rather miss those opportunities, I rather just wait for price to come to area I have figured it will stop back on retracement back testing, then risk much much smaller than $500, fills don't have slippage either, but doing it my way-they are not feel good trades-do enough of them, that feeling of upchucking goes away, LOL

@Pekelo, it is an interesting concept, thank you for sharing.