The Average Directional indicator (or ADX) is a directional trading indicator that is used to identify a technical trend, in this case of the Loom Network. The trend that is being identified, can be both a positive trend as a negative trend in the pricedevelopment of Loom Network.
The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for Loom Network. In this continuously updated article, we will explain the meaning and current trend of Loom Network. The current ADX analysis is based on the historical prices of Loom Network until May 24th, 2022.
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 Loom Network is shown for the period from 11/23/2021 until 05/24/2022. 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 Loom Network are listed in the table below.
|Loom Network average directional index||22.13|
|Loom Network positive directional indicator||38.05|
|Loom Network negative directional indicator||55.32|
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 Loom Network.
When the green line tops the red line, the Loom Network is in a positive trend. However, when the situation turns around, the trend has also changed to a negative trend for Loom Network.
Furthermore, the black line gives the strength of the current trend of Loom Network, both positive and negative. The higher the black line (ADX), the stronger the trend.
Loom Network 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 Loom Network 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 Loom Network follows a negative trend. The positive directional indicator (38.05) is lower than the negative directional indicator (55.32). When the Loom Network is in this kind of situations, the trend is negative.
Allthough the trend is negative, the current situation of the trend of Loom Network is not that strong. The ADX gives us a value of 22.13, which means that the trend currently followed by Loom Network is a weak one. To get clear signals from the ADX for Loom Network, you should wait until the ADX moves upwards of 25.
As mentioned, the current trend is negative, however the trend might flip over to a positive trend.