IOTA (IOT)

Current price: $ 0.31

24 hours price change: $ 0.0066 (2.18%)

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

The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for IOTA. In this continuously updated article, we will explain the meaning and current trend of IOTA. The current ADX analysis is based on the historical prices of IOTA until February 19th, 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 IOTA from 08/18/2018 until 02/19/2019.

In the chart above, the development of the price for IOTA is shown for the period from 08/18/2018 until 02/19/2019. This same timeframe has been used in the average directional indicator chart below.

Average directional indicator for IOTA until 02/19/2019.

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

IOTA average directional index15.46
IOTA positive directional indicator51.05
IOTA negative directional indicator29.77

 

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 IOTA.

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

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

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

The IOTA currently follows a positive trend. For IOTA, the positive directional indicator is 51.05. The value for the negative directional indicator is lower (29.77). This means that the current trend of the IOTA is positive.

To measure the strength of the current trend, we look at the ADX. The value of the ADX for IOTA  is 15.46, meaning that the trend is very weak. The ADX for IOTA does not give us a good indication to start buying or selling IOTA.

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