Binance Coin (BNB)

Current price: $ 27.96

24 hours price change: $ 0.09 (0.34%)

Binance Coin - Average Directional Index

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

The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for Binance Coin. In this continuously updated article, we will explain the meaning and current trend of Binance Coin. The current ADX analysis is based on the historical prices of Binance Coin until August 17th, 2019.

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 Binance Coin from 02/17/2019 until 08/17/2019.

In the chart above, the development of the price for Binance Coin is shown for the period from 02/17/2019 until 08/17/2019. This same timeframe has been used in the average directional indicator chart below.

Average directional indicator for Binance Coin until 08/17/2019.

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

Binance Coin average directional index 11.27
Binance Coin positive directional indicator 42.15
Binance Coin negative directional indicator 52.65

 

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 Binance Coin.

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

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

Binance Coin 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 Binance Coin is assumed to be positive. An important signal is when the -DI (red line) and +DI (green line) crosses over.

The Binance Coin currently follows a negative trend. For Binance Coin, the positive directional indicator is 42.15. The value for the negative directional indicator is higher (52.65). This means that the current trend of the Binance Coin is negative.

To measure the strength of the current trend, we look at the ADX. The value of the ADX for Binance Coin  is 11.27, meaning that the trend is very weak. The ADX for Binance Coin does not give us a good indication to start buying or selling Binance Coin.

To get a good signal to trade Binance Coin, we have to wait until the trend gives us a higher ADX value in the current negative trend.