The Average Directional indicator (or ADX) is a directional trading indicator that is used to identify a technical trend, in this case of the Synthetix Network Token. The trend that is being identified, can be both a positive trend as a negative trend in the pricedevelopment of Synthetix Network Token.
The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for Synthetix Network Token. In this continuously updated article, we will explain the meaning and current trend of Synthetix Network Token. The current ADX analysis is based on the historical prices of Synthetix Network Token until December 2nd, 2021.
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 Synthetix Network Token is shown for the period from 06/01/2021 until 12/02/2021. 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 Synthetix Network Token are listed in the table below.
|Synthetix Network Token average directional index||28.23|
|Synthetix Network Token positive directional indicator||20.72|
|Synthetix Network Token negative directional indicator||47.15|
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 Synthetix Network Token.
When the green line tops the red line, the Synthetix Network Token is in a positive trend. However, when the situation turns around, the trend has also changed to a negative trend for Synthetix Network Token.
Furthermore, the black line gives the strength of the current trend of Synthetix Network Token, both positive and negative. The higher the black line (ADX), the stronger the trend.
Synthetix Network Token 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 Synthetix Network Token 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 Synthetix Network Token. The positive directional indicator for Synthetix Network Token is 20.72, which is lower than the negative directional indicator (47.15). Therefore, the trend that Synthetix Network Token follows is negative.
The current ADX value is 28.23, which tells us that the current trend is strong. Using these values, we can asume that the Synthetix Network Token will continue its downwards trend. In short, the current average directional index gives us a selling signal for the Synthetix Network Token. However, you should always be aware, since trends are changing from time to time.