Ethereum Classic (ETC)

Current price: $ 6.07

24 hours price change: $ 0.07 (1.10%)

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

The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for Ethereum Classic. In this continuously updated article, we will explain the meaning and current trend of Ethereum Classic. The current ADX analysis is based on the historical prices of Ethereum Classic until September 22nd, 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 Ethereum Classic from 03/25/2019 until 09/22/2019.

In the chart above, the development of the price for Ethereum Classic is shown for the period from 03/25/2019 until 09/22/2019. This same timeframe has been used in the average directional indicator chart below.

Average directional indicator for Ethereum Classic until 09/22/2019.

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

Ethereum Classic average directional index 13.06
Ethereum Classic positive directional indicator 30.25
Ethereum Classic negative directional indicator 40.88

 

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 Ethereum Classic.

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

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

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

The Ethereum Classic currently follows a negative trend. For Ethereum Classic, the positive directional indicator is 30.25. The value for the negative directional indicator is higher (40.88). This means that the current trend of the Ethereum Classic is negative.

To measure the strength of the current trend, we look at the ADX. The value of the ADX for Ethereum Classic  is 13.06, meaning that the trend is very weak. The ADX for Ethereum Classic does not give us a good indication to start buying or selling Ethereum Classic.

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