The free KAGI Charts indicator for Metatrader 4 displays the simple Kagi charts buy and sell trading method on the chart.
The indicator gets displayed in a separate MT4 chart window as a blue thick and thin line.
Buy & Sell Trade Example
- Buy the currency pair if the blue line becomes thick (bullish market).
- Sell the currency pair if the blue line becomes thin (bearish market).
The KAGI Charts indicator can be used for trade entry or as a directional trend filter for other strategies and systems.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “KAGI_1.mq4” indicator for MT4
Indicator Chart (EUR/USD H4)
The example chart below displays the KAGI Charts mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the KAGI Charts Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Signal
Does the indicator repaint? No.
Kagi Charts + Chandelier Exit MT4 Day Trading Strategy
This day trading strategy combines the Kagi Charts Indicator for MT4 and the Chandelier Exit Indicator for MT4.
The Kagi Charts indicator shows trend direction with line thickness and color: a thick blue line indicates a bullish trend, while a thin blue line signals a bearish trend.
The Chandelier Exit provides potential exit points: a yellow line suggests a buy, and a magenta line indicates a sell.
By combining trend direction with structured exit points, traders can capture intraday moves with defined risk management.
This strategy is suitable for M15 and H1 charts and works well on major currency pairs such as EURUSD, GBPUSD, and USDJPY.
It is ideal for day traders who want to follow trend direction while using systematic exit levels.
Buy Entry Rules
- Confirm that the Kagi Chart line is thick blue, indicating a bullish trend.
- Wait for the Chandelier Exit line to turn yellow, signaling a buy opportunity.
- Enter a buy trade at the close of the confirming candle.
- Stop Loss: place below the most recent swing low or slightly below the Chandelier Exit line.
- Take Profit: aim for a 1.5×–2× risk reward or exit when the Chandelier Exit line turns magenta.
Sell Entry Rules
- Confirm that the Kagi Chart line is thin blue, indicating a bearish trend.
- Wait for the Chandelier Exit line to turn magenta, signaling a sell opportunity.
- Enter a sell trade at the close of the confirming candle.
- Stop Loss: place above the most recent swing high or slightly above the Chandelier Exit line.
- Take Profit: aim for 1.5×–2× risk reward or exit when the Chandelier Exit line turns yellow.
Advantages
- Combines trend-following with systematic exit levels for disciplined day trading.
- Kagi Charts filter out noise and provide a clear trend direction.
- Chandelier Exit lines offer visual exit cues, reducing guesswork.
- Works on multiple pairs and timeframes for day trading setups.
Drawbacks
- Trends may be short-lived in choppy markets, causing frequent stop-outs.
- Entry signals may lag slightly after sudden price spikes.
- Requires monitoring as both trend and exit lines may change during intraday volatility.
- Not suitable for scalping or very short-term trades.
Example Case Study 1 — AUDUSD, M15
During the London session, the Kagi Chart line turned thick blue, signaling a bullish trend.
The Chandelier Exit line switched to yellow.
A buy trade was entered at 0.6685 with a stop loss at 0.6675 and a take profit at 0.6700.
Price trended upward and reached the target within two hours, providing +15 pips.
Example Case Study 2 — USDJPY, H1
During the New York session, the Kagi Chart line turned thin blue, indicating a bearish trend.
The Chandelier Exit line turned magenta, signaling a sell.
A short trade at 149.80 with a stop at 150.00 and a take profit at 149.50 captured a 30 pip move as the price followed the trend for several hours.
Strategy Tips
- Trade only when both indicators confirm the trend and entry direction.
- Adjust stop loss distances depending on volatility and pair behavior.
- Use a fixed reward-to-risk ratio for consistent results.
- Consider exiting early if the trend reverses or the Chandelier Exit signals change.
- Focus on major sessions for stronger price movements.
By combining the Kagi Charts and Chandelier Exit indicators, day traders can follow the trend with clear entry and exit signals, allowing structured intraday trades with controlled risk and profit targets.
