Steem (STEEM)

Current price: $ 0.37

24 hours price change: $ -0.04 (-9.24%)

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

The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for Steem. In this continuously updated article, we will explain the meaning and current trend of Steem. The current ADX analysis is based on the historical prices of Steem until April 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 Steem from 10/24/2018 until 04/23/2019.

In the chart above, the development of the price for Steem is shown for the period from 10/24/2018 until 04/23/2019. This same timeframe has been used in the average directional indicator chart below.

Average directional indicator for Steem until 04/23/2019.

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

Steem average directional index15.20
Steem positive directional indicator36.22
Steem negative directional indicator56.75

 

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 Steem.

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

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

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

The Steem currently follows a negative trend. For Steem, the positive directional indicator is 36.22. The value for the negative directional indicator is higher (56.75). This means that the current trend of the Steem is negative.

To measure the strength of the current trend, we look at the ADX. The value of the ADX for Steem  is 15.20, meaning that the trend is very weak. The ADX for Steem does not give us a good indication to start buying or selling Steem.

To get a good signal to trade Steem, we have to wait until the trend gives us a higher ADX value in the current negative trend.