The Average Directional indicator (or ADX) is a directional trading indicator that is used to identify a technical trend, in this case of the Metaverse ETP. The trend that is being identified, can be both a positive trend as a negative trend in the pricedevelopment of Metaverse ETP.
The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for Metaverse ETP. In this continuously updated article, we will explain the meaning and current trend of Metaverse ETP. The current ADX analysis is based on the historical prices of Metaverse ETP until September 26th, 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 Metaverse ETP is shown for the period from 03/28/2022 until 09/26/2022. 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 Metaverse ETP are listed in the table below.
|Metaverse ETP average directional index||32.16|
|Metaverse ETP positive directional indicator||31.78|
|Metaverse ETP negative directional indicator||61.52|
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 Metaverse ETP.
When the green line tops the red line, the Metaverse ETP is in a positive trend. However, when the situation turns around, the trend has also changed to a negative trend for Metaverse ETP.
Furthermore, the black line gives the strength of the current trend of Metaverse ETP, both positive and negative. The higher the black line (ADX), the stronger the trend.
Metaverse ETP 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 Metaverse ETP is assumed to be positive. An important signal is when the -DI (red line) and +DI (green line) crosses over.
The current directional indicator gives a negative signal for Metaverse ETP. The positive directional indicator for Metaverse ETP is 31.78, which is lower than the negative directional indicator (61.52). Therefore, the trend that Metaverse ETP follows is negative.
The current ADX value is 32.16, which tells us that the current trend is strong. Using these values, we can asume that the Metaverse ETP will continue its downwards trend. In short, the current average directional index gives us a selling signal for the Metaverse ETP. However, you should always be aware, since trends are changing from time to time.