Bitcoin Diamond (BCD)

Current price: $ 0.84

24 hours price change: $ -0.04 (-4.93%)

Bitcoin Diamond 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 Bitcoin Diamond. The trend that is being identified, can be both a positive trend as a negative trend in the pricedevelopment of Bitcoin Diamond.

The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for Bitcoin Diamond. In this continuously updated article, we will explain the meaning and current trend of Bitcoin Diamond. The current ADX analysis is based on the historical prices of Bitcoin Diamond until August 4th, 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 Bitcoin Diamond from 02/04/2020 until 08/04/2020.

In the chart above, the development of the price for Bitcoin Diamond is shown for the period from 02/04/2020 until 08/04/2020. This same timeframe has been used in the average directional indicator chart below.

Average directional indicator for Bitcoin Diamond until 08/04/2020.

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

Bitcoin Diamond average directional index 14.75
Bitcoin Diamond positive directional indicator 46.20
Bitcoin Diamond negative directional indicator 51.87

 

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 Bitcoin Diamond.

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

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

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

The Bitcoin Diamond currently follows a negative trend. For Bitcoin Diamond, the positive directional indicator is 46.20. The value for the negative directional indicator is higher (51.87). This means that the current trend of the Bitcoin Diamond is negative.

To measure the strength of the current trend, we look at the ADX. The value of the ADX for Bitcoin Diamond  is 14.75, meaning that the trend is very weak. The ADX for Bitcoin Diamond does not give us a good indication to start buying or selling Bitcoin Diamond.

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

 

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