Avalanche (AVAX)

Current price: $ 86.49

24 hours price change: $ -0.02 (-0.02%)

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

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

Price chart for Avalanche from 07/18/2021 until 01/18/2022.

In the chart above, the development of the price for Avalanche is shown for the period from 07/18/2021 until 01/18/2022. This same timeframe has been used in the average directional indicator chart below.

Average directional indicator for Avalanche until 01/18/2022.

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

Avalanche average directional index 15.40
Avalanche positive directional indicator 32.62
Avalanche negative directional indicator 48.46

 

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 Avalanche.

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

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

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

The Avalanche currently follows a negative trend. For Avalanche, the positive directional indicator is 32.62. The value for the negative directional indicator is higher (48.46). This means that the current trend of the Avalanche is negative.

To measure the strength of the current trend, we look at the ADX. The value of the ADX for Avalanche  is 15.40, meaning that the trend is very weak. The ADX for Avalanche does not give us a good indication to start buying or selling Avalanche.

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

 

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