USD Coin (USDC)

Current price: $ 1.00

24 hours price change: $ -0.001996 (-0.20%)

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

The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for USD Coin. In this continuously updated article, we will explain the meaning and current trend of USD Coin. The current ADX analysis is based on the historical prices of USD Coin until July 21st, 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 USD Coin from 01/20/2019 until 07/21/2019.

In the chart above, the development of the price for USD Coin is shown for the period from 01/20/2019 until 07/21/2019. This same timeframe has been used in the average directional indicator chart below.

Average directional indicator for USD Coin until 07/21/2019.

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

USD Coin average directional index17.35
USD Coin positive directional indicator30.94
USD Coin negative directional indicator38.47

 

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 USD Coin.

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

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

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

The USD Coin currently follows a negative trend. For USD Coin, the positive directional indicator is 30.94. The value for the negative directional indicator is higher (38.47). This means that the current trend of the USD Coin is negative.

To measure the strength of the current trend, we look at the ADX. The value of the ADX for USD Coin  is 17.35, meaning that the trend is very weak. The ADX for USD Coin does not give us a good indication to start buying or selling USD Coin.

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