BitShares (BTS)

Current price: $ 0.06

24 hours price change: $ 0.0006 (0.88%)

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

The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for BitShares. In this continuously updated article, we will explain the meaning and current trend of BitShares. The current ADX analysis is based on the historical prices of BitShares until May 23rd, 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 BitShares from 11/23/2018 until 05/23/2019.

In the chart above, the development of the price for BitShares is shown for the period from 11/23/2018 until 05/23/2019. This same timeframe has been used in the average directional indicator chart below.

Average directional indicator for BitShares until 05/23/2019.

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

BitShares average directional index19.25
BitShares positive directional indicator48.39
BitShares negative directional indicator40.48

 

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 BitShares.

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

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

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

The BitShares currently follows a positive trend. For BitShares, the positive directional indicator is 48.39. The value for the negative directional indicator is lower (40.48). This means that the current trend of the BitShares is positive.

To measure the strength of the current trend, we look at the ADX. The value of the ADX for BitShares  is 19.25, meaning that the trend is very weak. The ADX for BitShares does not give us a good indication to start buying or selling BitShares.

To get a good signal to buy BitShares, we have to wait until the trend gives us a higher ADX value in the current positive trend.