The Kagi Indicator (sometimes called Forex Kagi) has added to our vast database of metatrader indicators. In all honesty I have little knowledge of this indicator but alot of forex traders and forex trading systems seem to be using it these days.
Investopedia has some comprehensive information on Kagi Charts and how to use them however in the simplest form you trade when there are changes in the thickness of the lines and naturally, also the direction of the lines (An opposite directed Kagi line appears when the price reverses by a specific amount). If a thin line goes beyond the previous swing high the line thickens. And thus a thick line becomes a thin line when the thick line moves below the previous swing low.
Kagi Charts will appeal to traders who like renko charts and ranges bar as they are purely based on price action. Although orignally “from” Japan the concept has been brought to the forefront of modern trading by Steve Nison in his popular trading book “Beyond Candlesticks”(c1994).
Free Metatrader Indicator Download:Forex Kagi Indicator