Qtum (QTUM)

Current price: $ 2.92

24 hours price change: $ 0.0099 (0.34%)

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

The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for Qtum. In this continuously updated article, we will explain the meaning and current trend of Qtum. The current ADX analysis is based on the historical prices of Qtum until May 23rd, 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 Qtum from 11/23/2018 until 05/23/2019.

In the chart above, the development of the price for Qtum is shown for the period from 11/23/2018 until 05/23/2019. This same timeframe has been used in the average directional indicator chart below.

Average directional indicator for Qtum until 05/23/2019.

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

Qtum average directional index16.88
Qtum positive directional indicator51.25
Qtum negative directional indicator43.96

 

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 Qtum.

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

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

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

The Qtum currently follows a positive trend. For Qtum, the positive directional indicator is 51.25. The value for the negative directional indicator is lower (43.96). This means that the current trend of the Qtum is positive.

To measure the strength of the current trend, we look at the ADX. The value of the ADX for Qtum  is 16.88, meaning that the trend is very weak. The ADX for Qtum does not give us a good indication to start buying or selling Qtum.

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