The Average Directional indicator (or ADX) is a directional trading indicator that is used to identify a technical trend, in this case of the Siacoin. The trend that is being identified, can be both a positive trend as a negative trend in the pricedevelopment of Siacoin.
The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for Siacoin. In this continuously updated article, we will explain the meaning and current trend of Siacoin. The current ADX analysis is based on the historical prices of Siacoin until June 3rd, 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 Siacoin is shown for the period from 12/03/2022 until 06/03/2023. 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 Siacoin are listed in the table below.
|Siacoin average directional index||26.89|
|Siacoin positive directional indicator||38.12|
|Siacoin negative directional indicator||60.58|
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 Siacoin.
When the green line tops the red line, the Siacoin is in a positive trend. However, when the situation turns around, the trend has also changed to a negative trend for Siacoin.
Furthermore, the black line gives the strength of the current trend of Siacoin, both positive and negative. The higher the black line (ADX), the stronger the trend.
Siacoin 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 Siacoin is assumed to be positive. An important signal is when the -DI (red line) and +DI (green line) crosses over.
The current directional indicator gives a negative signal for Siacoin. The positive directional indicator for Siacoin is 38.12, which is lower than the negative directional indicator (60.58). Therefore, the trend that Siacoin follows is negative.
The current ADX value is 26.89, which tells us that the current trend is strong. Using these values, we can asume that the Siacoin will continue its downwards trend. In short, the current average directional index gives us a selling signal for the Siacoin. However, you should always be aware, since trends are changing from time to time.