VeChain (VEN)

Current price: $ 0.61

24 hours price change: - (-)

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

The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for VeChain. In this continuously updated article, we will explain the meaning and current trend of VeChain. The current ADX analysis is based on the historical prices of VeChain until December 18th, 2018.

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 VeChain from 06/18/2018 until 12/18/2018.

In the chart above, the development of the price for VeChain is shown for the period from 06/18/2018 until 12/18/2018. This same timeframe has been used in the average directional indicator chart below.

Average directional indicator for VeChain until 12/18/2018.

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

VeChain average directional index5.56
VeChain positive directional indicator49.25
VeChain negative directional indicator50.27

 

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 VeChain.

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

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

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

The VeChain currently follows a negative trend. For VeChain, the positive directional indicator is 49.25. The value for the negative directional indicator is higher (50.27). This means that the current trend of the VeChain is negative.

To measure the strength of the current trend, we look at the ADX. The value of the ADX for VeChain  is 5.56, meaning that the trend is very weak. The ADX for VeChain does not give us a good indication to start buying or selling VeChain.

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