The Average Directional indicator (or ADX) is a directional trading indicator that is used to identify a technical trend, in this case of the THETA. The trend that is being identified, can be both a positive trend as a negative trend in the pricedevelopment of THETA.
The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for THETA. In this continuously updated article, we will explain the meaning and current trend of THETA. The current ADX analysis is based on the historical prices of THETA until January 28th, 2022.
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 THETA is shown for the period from 07/28/2021 until 01/28/2022. 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 THETA are listed in the table below.
|THETA average directional index||21.81|
|THETA positive directional indicator||28.32|
|THETA negative directional indicator||51.19|
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 THETA.
When the green line tops the red line, the THETA is in a positive trend. However, when the situation turns around, the trend has also changed to a negative trend for THETA.
Furthermore, the black line gives the strength of the current trend of THETA, both positive and negative. The higher the black line (ADX), the stronger the trend.
THETA 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 THETA 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 THETA follows a negative trend. The positive directional indicator (28.32) is lower than the negative directional indicator (51.19). When the THETA is in this kind of situations, the trend is negative.
Allthough the trend is negative, the current situation of the trend of THETA is not that strong. The ADX gives us a value of 21.81, which means that the trend currently followed by THETA is a weak one. To get clear signals from the ADX for THETA, you should wait until the ADX moves upwards of 25.
As mentioned, the current trend is negative, however the trend might flip over to a positive trend.