Tether (USDT)

Current price: $ 1.00

24 hours price change: $ -0.001000 (-0.10%)

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 September 18th, 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 03/21/2019 until 09/18/2019.

In the chart above, the development of the price for Tether is shown for the period from 03/21/2019 until 09/18/2019. This same timeframe has been used in the average directional indicator chart below.

Average directional indicator for Tether until 09/18/2019.

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 index 20.59
Tether positive directional indicator 43.78
Tether negative directional indicator 36.79

 

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.

As you can see in the chart above, the Tether follows a positive trend. The positive directional indicator (43.78) is higher than the negative directional indicator (36.79). When this situation occurs, the trend can be identified as a positive trend for the Tether.

Allthough the trend is positive, the current situation of the trend of Tether is not that strong. The ADX gives us a value of 20.59, which means that the trend currently followed by Tether is a weak one. To get clear signals from the ADX for Tether, you should wait until the ADX moves upwards of 25.

As mentioned, the current trend is positive, however the trend might flip over to a negative trend.