Binance Coin (BNB)

Current price: $ 5.83

24 hours price change: $ 0.69 (13.42%)

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 December 17th, 2018.

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 06/17/2018 until 12/17/2018.

In the chart above, the development of the price for Binance Coin is shown for the period from 06/17/2018 until 12/17/2018. This same timeframe has been used in the average directional indicator chart below.

Average directional indicator for Binance Coin until 12/17/2018.

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 index29.38
Binance Coin positive directional indicator49.89
Binance Coin negative directional indicator39.61

 

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 current directional indicator gives a positive signal for Binance Coin. The positive directional indicator for Binance Coin is 49.89, which is higher than the negative directional indicator (39.61). The trend that the Binance Coin follows is a positive one.

The current ADX value is 29.38, which tells us that the current trend is strong. Using these values, we can asume that the Binance Coin will continue its upwards trend. In short, the current average directional index gives us a buying signal for the Binance Coin. However, keep an eye on turning trends.