Band Protocol (BAND)

Current price: $ 4.10

24 hours price change: $ 0.02 (0.45%)

Band Protocol ADX

The Average Directional indicator (or ADX) is a directional trading indicator that is used to identify a technical trend, in this case of the Band Protocol. The trend that is being identified, can be both a positive trend as a negative trend in the pricedevelopment of Band Protocol.

The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for Band Protocol. In this continuously updated article, we will explain the meaning and current trend of Band Protocol. The current ADX analysis is based on the historical prices of Band Protocol until August 2nd, 2020.

In the chart below, the strength the trend is drawn, as well as the positive and negative directional indicators. The ADX (Average Directional Index) is the black line. The positive directional indicator (+DI) is the green line, and the negative directional indicator (-DI) is drawn in red.

Price chart for Band Protocol from 02/02/2020 until 08/02/2020.

In the chart above, the development of the price for Band Protocol is shown for the period from 02/02/2020 until 08/02/2020. This same timeframe has been used in the average directional indicator chart below.

Average directional indicator for Band Protocol until 08/02/2020.

In the charts above, you can see the trends of the ADX, +DI and -DI. The current values of these three indicators for the Band Protocol are listed in the table below.

Band Protocol average directional index 37.20
Band Protocol positive directional indicator 60.31
Band Protocol negative directional indicator 36.96

 

Several signals can be gained from the chart above. First of all, the green line gives us an indication of the positive trend. The opposite line, the red one, indicates the negative trend for Band Protocol.

When the green line tops the red line, the Band Protocol is in a positive trend. However, when the situation turns around, the trend has also changed to a negative trend for Band Protocol.

Furthermore, the black line gives the strength of the current trend of Band Protocol, both positive and negative. The higher the black line (ADX), the stronger the trend.

Band Protocol ADX score

The Average Directional Index (ADX) is used to measure the strength or weakness of a trend, not the actual direction. In general, when the positive directional indicator is higher than the negative directional in indicator, the trend of Band Protocol is assumed to be positive. An important signal is when the -DI (red line) and +DI (green line) crosses over.

The current directional indicator gives a positive signal for Band Protocol. The positive directional indicator for Band Protocol is 60.31, which is higher than the negative directional indicator (36.96). The trend that the Band Protocol follows is a positive one.

The current ADX value is 37.20, which tells us that the current trend is strong. Using these values, we can asume that the Band Protocol will continue its upwards trend. In short, the current average directional index gives us a buying signal for the Band Protocol. However, keep an eye on turning trends.

 

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