Kagi Trend Filter Indicator for TradingView

The Kagi Trend Filter is a custom TradingView Pine Script indicator designed to help traders identify prevailing trend direction by applying the logic of Kagi charting to standard price data. Unlike traditional candlestick or bar charts, Kagi charts ignore time and only plot price movements when a defined reversal threshold is exceeded, making them effective at cutting through short-term noise.

By embedding this logic into an overlay or signal filter, the script allows traders to see when price action has made a meaningful directional shift rather than reacting to every minor fluctuation. This can be especially useful for swing traders and position traders who want to avoid being shaken out of trades by normal market volatility.

The indicator can serve as a standalone trend gauge or be combined with other tools such as momentum oscillators, moving averages, or volume indicators to build a more complete trading strategy. When the Kagi-based trend reads bullish, traders may look for long setups; when it turns bearish, short opportunities or defensive positioning may be more appropriate.

The script is publicly available on TradingView and can be added directly to any chart through the platform's indicator library. Traders are encouraged to backtest and adjust the reversal sensitivity parameter to suit the specific asset and timeframe they are trading.