The Average Directional indicator (or ADX) is a directional trading indicator that is used to identify a technical trend, in this case of the Horizen. The trend that is being identified, can be both a positive trend as a negative trend in the pricedevelopment of Horizen.
The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for Horizen. In this continuously updated article, we will explain the meaning and current trend of Horizen. The current ADX analysis is based on the historical prices of Horizen until January 28th, 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 Horizen is shown for the period from 07/28/2022 until 01/28/2023. 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 Horizen are listed in the table below.
|Horizen average directional index||21.45|
|Horizen positive directional indicator||42.15|
|Horizen negative directional indicator||28.72|
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 Horizen.
When the green line tops the red line, the Horizen is in a positive trend. However, when the situation turns around, the trend has also changed to a negative trend for Horizen.
Furthermore, the black line gives the strength of the current trend of Horizen, both positive and negative. The higher the black line (ADX), the stronger the trend.
Horizen 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 Horizen is assumed to be positive. An important signal is when the -DI (red line) and +DI (green line) crosses over.
As you can see in the chart above, the Horizen follows a positive trend. The positive directional indicator (42.15) is higher than the negative directional indicator (28.72). When this situation occurs, the trend can be identified as a positive trend for the Horizen.
Allthough the trend is positive, the current situation of the trend of Horizen is not that strong. The ADX gives us a value of 21.45, which means that the trend currently followed by Horizen is a weak one. To get clear signals from the ADX for Horizen, you should wait until the ADX moves upwards of 25.
As mentioned, the current trend is positive, however the trend might flip over to a negative trend.