The Average Directional indicator (or ADX) is a directional trading indicator that is used to identify a technical trend, in this case of the Zilliqa. The trend that is being identified, can be both a positive trend as a negative trend in the pricedevelopment of Zilliqa.
The ADX was primarily developed for commodities, however it is also in use for stock and currency technical analysis, as well as for Zilliqa. In this continuously updated article, we will explain the meaning and current trend of Zilliqa. The current ADX analysis is based on the historical prices of Zilliqa until September 25th, 2023.
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 Zilliqa is shown for the period from 03/27/2023 until 09/25/2023. 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 Zilliqa are listed in the table below.
|Zilliqa average directional index||17.05|
|Zilliqa positive directional indicator||50.83|
|Zilliqa negative directional indicator||46.21|
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 Zilliqa.
When the green line tops the red line, the Zilliqa is in a positive trend. However, when the situation turns around, the trend has also changed to a negative trend for Zilliqa.
Furthermore, the black line gives the strength of the current trend of Zilliqa, both positive and negative. The higher the black line (ADX), the stronger the trend.
Zilliqa 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 Zilliqa is assumed to be positive. An important signal is when the -DI (red line) and +DI (green line) crosses over.
The Zilliqa currently follows a positive trend. For Zilliqa, the positive directional indicator is 50.83. The value for the negative directional indicator is lower (46.21). This means that the current trend of the Zilliqa is positive.
To measure the strength of the current trend, we look at the ADX. The value of the ADX for Zilliqa is 17.05, meaning that the trend is very weak. The ADX for Zilliqa does not give us a good indication to start buying or selling Zilliqa.
To get a good signal to buy Zilliqa, we have to wait until the trend gives us a higher ADX value in the current positive trend.