Waves (WAVES)

Current price: $ 0.68

24 hours price change: $ 0.01 (2.21%)

Waves ADX

The Average Directional indicator (or ADX) is a directional trading indicator that is used to identify a technical trend, in this case of the Waves. The trend that is being identified, can be both a positive trend as a negative trend in the pricedevelopment of Waves.

The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for Waves. In this continuously updated article, we will explain the meaning and current trend of Waves. The current ADX analysis is based on the historical prices of Waves until November 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 Waves from 05/21/2019 until 11/21/2019.

In the chart above, the development of the price for Waves is shown for the period from 05/21/2019 until 11/21/2019. This same timeframe has been used in the average directional indicator chart below.

Average directional indicator for Waves until 11/21/2019.

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

Waves average directional index 18.07
Waves positive directional indicator 24.31
Waves negative directional indicator 68.23

 

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 Waves.

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

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

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

The Waves currently follows a negative trend. For Waves, the positive directional indicator is 24.31. The value for the negative directional indicator is higher (68.23). This means that the current trend of the Waves is negative.

To measure the strength of the current trend, we look at the ADX. The value of the ADX for Waves  is 18.07, meaning that the trend is very weak. The ADX for Waves does not give us a good indication to start buying or selling Waves.

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