The Average Directional indicator (or ADX) is a directional trading indicator that is used to identify a technical trend, in this case of the DigixDAO. The trend that is being identified, can be both a positive trend as a negative trend in the pricedevelopment of DigixDAO.
The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for DigixDAO. In this continuously updated article, we will explain the meaning and current trend of DigixDAO. The current ADX analysis is based on the historical prices of DigixDAO until January 29th, 2023.
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.
In the chart above, the development of the price for DigixDAO is shown for the period from 07/29/2022 until 01/29/2023. This same timeframe has been used in the average directional indicator chart below.
In the charts above, you can see the trends of the ADX, +DI and -DI. The current values of these three indicators for the DigixDAO are listed in the table below.
|DigixDAO average directional index||55.60|
|DigixDAO positive directional indicator||69.74|
|DigixDAO negative directional indicator||13.51|
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 DigixDAO.
When the green line tops the red line, the DigixDAO is in a positive trend. However, when the situation turns around, the trend has also changed to a negative trend for DigixDAO.
Furthermore, the black line gives the strength of the current trend of DigixDAO, both positive and negative. The higher the black line (ADX), the stronger the trend.
DigixDAO 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 DigixDAO 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 DigixDAO. The positive directional indicator for DigixDAO is 69.74, which is higher than the negative directional indicator (13.51). The trend that the DigixDAO follows is a positive one.
The current ADX value is 55.60, which tells us that the current trend is strong. Using these values, we can asume that the DigixDAO will continue its upwards trend. In short, the current average directional index gives us a buying signal for the DigixDAO. However, keep an eye on turning trends.