Tether (USDT)

Current price: $ 1.00

24 hours price change: $ -0.002100 (-0.21%)

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

The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for Tether. In this continuously updated article, we will explain the meaning and current trend of Tether. The current ADX analysis is based on the historical prices of Tether until July 20th, 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 Tether from 01/20/2019 until 07/20/2019.

In the chart above, the development of the price for Tether is shown for the period from 01/20/2019 until 07/20/2019. This same timeframe has been used in the average directional indicator chart below.

Average directional indicator for Tether until 07/20/2019.

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

Tether average directional index6.85
Tether positive directional indicator46.38
Tether negative directional indicator43.93

 

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 Tether.

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

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

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

The Tether currently follows a positive trend. For Tether, the positive directional indicator is 46.38. The value for the negative directional indicator is lower (43.93). This means that the current trend of the Tether is positive.

To measure the strength of the current trend, we look at the ADX. The value of the ADX for Tether  is 6.85, meaning that the trend is very weak. The ADX for Tether does not give us a good indication to start buying or selling Tether.

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