Kagi chart with Bollinger Bands

Pekelo

Pekelo

I never even heard about Kagi charts, but I was bored and started to tinker with my chart set up. Interestingly, this is the one that I saw some predictive value, but not alone.

Combining it with BBs, so far here is my theory: when Kagi hits the BB and changes color, that is the time to enter. I am still testing the strategy, and maybe it is nothing, but today on the 5 mins chart it worked rather well...

The other thing that Kagi seems to be good for, to keep you in the trend. As long as it doesn't change color, stay in the trend, green up, red down...

If anyone has experience with Kagi, don't be shy to share how you use it...
 
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!
 
OK here is the 5 mins chart for the last 12 or so hours. I noted the entries, the last one is based on touch not because of the change of color/direction, and so far the trend is still up. Kagi5mins.png

I sim shorted at 2718.5 on the touch and although it went up to 21, then it dropped down to 14, where I exited (based on something else). And sure enough since there was no color change price moved back to 18+ so being long was/is still good.

Now I am waiting for a change to red to test it, but the bastard has been green for 2.5 hours. :)

Edit: That drop back from 2721 to 2713 was a buy in opportunity, just like the Kagi indicated (long) because no color change and we are at new highs. I'll be damned!!!
 
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Here is the chart from yesterday's CPI meltdown, once the color changed the green kept you in the trend for a long time.

By the way I am not sure those are the BB lines because they are different from the candle stick + BB chart. Maybe the value is effecting the BB calculation...
 

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Looks like it is better to use it keeping you in the trend, instead of as an entry signal. The 1 and 15 mins charts seem to be too random, but I see value in the 5 mins chart, specially if one jumps out of a trend after a good run (taking profits), and when price moves back, as long as the color has stayed the same, it seems to be safe to enter again with the same trend...

An example of this would have been the drop back from 2721 to 2713 on the first chart, but price still came back, currently at 2724...
 
1a2b3cppp said:
Exceptional when there's a trend.

Good luck not depleting your account when it's not.
More...

This has been so far my experience with it. Also you have to find the right time frame, so far the 5 mins is the most promising. Also using 2 time frames when they are confirming each other seems to work.

Luckily we have lots of trends lately...
 
Looks like price + volume is no less clearer.
stooff.png

used kagi long ago with no luck.they based on price close which i dont like
 
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