Kagi

Presentation Kagi:

The eToro is a special representation came from the Far East. The particularity of this type of representation is that it is not plotted as a function of time but based on price alone. The color and sense lines are connected under the contract. If prices go in the same direction as the previous line, then it will be extended. By cons, if the course turns to a predetermined amount (commonly known as rollover threshold), a new line is drawn in the opposite direction. It is a graphical representation of trend following. When prices break a higher or lower earlier, the color of the line changes. The horizontal lines that you see on the charts kagi did not really exist, they are just drawn to give continuity to the course and are called lines of inflection.

Terms of Use:

There is no magic threshold of turning running for all values, therefore, for a given value, we choose a threshold of rollover greater relevance compared to the historical record and giving fewer false signals.
Kagi: Application to the trading and investment:

The first method is the most basic. It involves buying lorsq'une line turns green and sell when it turns red.

The second method is to wait for a break of several lower or higher. Indeed, the color change of the line is confirmed if we manage to break two highest or two lowest minimum.