CardanoLong
ADA and an ADX - Also buy some ADA before its too late
Updated
ADA and an Average Directional Index (ADX DI).
Education:
Look very closely at the entire history of this ADX DI indicator on this ADA daily chart, you can clearly see the relationship between big price movements in either positive and negative direction and the ADX (Yellow Line) which is an indication of the strength of that positive or negative momentum. Note that the ADX (Yellow Line) is just indicating the trend strength or the strength of that positive or negative momentum, it is the +DI (Green Line) and -DI (Red Line) that indicate whether on not the trend or momentum is positive or negative.
If the +DI (Green Line) & the -DI (Red Line) are moving away from each other, and if the +DI (Green Line) is above the -DI (Red Line) then this an indication of increasing positive momentum, and increasing negative momentum if the -DI (Red Line) is above the +DI (Green Line).
If the +DI (Green Line) is above & moving closer to its -DI (Red Line) this is an indication of decreasing positive momentum. and the possibility of a reversal to negative momentum if the +DI (Green Line) crosses below its -DI (Red Line). If the -DI (Red Line) is above & moving closer to its +DI (Green Line) this is an indication of decreasing negative momentum. and the possibility of a reversal to positive momentum if the -DI (Red Line) crosses below its +DI (Green Line).
I have added a 9 period Exponential Moving Average to the ADX. When the ADX (Yellow Line) is ABOVE the 9 Period EMA (White Line) then this indicates increasing trend strength either positive or negative. When the ADX (Yellow Line) is BELOW the 9 Period EMA (White Line) then this indicates decreasing trend strength either positive or negative.
There are many different versions of the ADX indicator on TradingView, from ones that just have the ADX, +DI & -DI lines, histograms, and some with just the ADX line. For many months I was using the ADX DI SMA but have decided to change over to this version ADX DI because the ADX (Yellow Line) is more reactive and accurate compared to the ADX DI SMA version.
So onto this ADA daily chart:
So using this ADA Daily Chart as an example, we can see that the ADX DI Is indicting that there is positive momentum with the +DI (Green Line) at 25.8 above its -DI (Red Line) which is at 10.3. The ADX (Yellow Line) is at 23.3 and ABOVE its 9 Period EMA (White Line) which is at 22.2.
We can clearly see that the ADX (Yellow Line) is above the 20 Threshold, this indicates that the trend on this daily chart is strong at the moment. Notice, that the 9 Period EMA (White Line) has crossed back under the ADX (Yellow Line) indicating increased strength.
At the moment of typing this, the +DI (Green Line) is above its -DI (Red Line) and the ADX (Yellow Line) is above the 20 Threshold and has crossed back above its 9 Period EMA (White Line). This is telling me that if the +DI (Green Line) stays above its -DI (Red Line) then ADA may soon be in for another massive upwards momentum spike where we see the ADX (Yellow Line) shoot up exponentially on the daily chart to possibly the 40-60 range. Looking at the history of the ADX DI indicator on this daily chart, we can say that if the ADX (Yellow Line) goes to the 60 range then we could be looking at around a +250% move upwards, If the ADX (Yellow Line) goes to the 40 range the we could be looking at around a +150% move upwards.
Like all my previous post, this is more of an educational post showing why i like the ADX DI indicator, because it not only shows whether the momentum is positive or negative, but also how strong that positive or negative momentum is.
Also, best to buy some ADA before is too late 👍
I hope this post is helpful with your trading or hodl-ing 🔥🚀🌍🌔🪐🛸👽
NOTES:
ADX (Yellow Line) = Trend Strength
+DI (Green Line) = Positive Momentum
-DI (Red Line) = Negative Momentum
Dashed White Line = Threshold Level set to 20
Extra added:
EMA (White Line) = 9 Period Exponential Moving Average
A closer Look at the ADX DI
Here are some of the Different ADX indicators available on TraidingView. The ADX indicator & the DMI indicator are the default TradingView versions and the others are created by users.
Education:
Look very closely at the entire history of this ADX DI indicator on this ADA daily chart, you can clearly see the relationship between big price movements in either positive and negative direction and the ADX (Yellow Line) which is an indication of the strength of that positive or negative momentum. Note that the ADX (Yellow Line) is just indicating the trend strength or the strength of that positive or negative momentum, it is the +DI (Green Line) and -DI (Red Line) that indicate whether on not the trend or momentum is positive or negative.
If the +DI (Green Line) & the -DI (Red Line) are moving away from each other, and if the +DI (Green Line) is above the -DI (Red Line) then this an indication of increasing positive momentum, and increasing negative momentum if the -DI (Red Line) is above the +DI (Green Line).
If the +DI (Green Line) is above & moving closer to its -DI (Red Line) this is an indication of decreasing positive momentum. and the possibility of a reversal to negative momentum if the +DI (Green Line) crosses below its -DI (Red Line). If the -DI (Red Line) is above & moving closer to its +DI (Green Line) this is an indication of decreasing negative momentum. and the possibility of a reversal to positive momentum if the -DI (Red Line) crosses below its +DI (Green Line).
I have added a 9 period Exponential Moving Average to the ADX. When the ADX (Yellow Line) is ABOVE the 9 Period EMA (White Line) then this indicates increasing trend strength either positive or negative. When the ADX (Yellow Line) is BELOW the 9 Period EMA (White Line) then this indicates decreasing trend strength either positive or negative.
There are many different versions of the ADX indicator on TradingView, from ones that just have the ADX, +DI & -DI lines, histograms, and some with just the ADX line. For many months I was using the ADX DI SMA but have decided to change over to this version ADX DI because the ADX (Yellow Line) is more reactive and accurate compared to the ADX DI SMA version.
So onto this ADA daily chart:
So using this ADA Daily Chart as an example, we can see that the ADX DI Is indicting that there is positive momentum with the +DI (Green Line) at 25.8 above its -DI (Red Line) which is at 10.3. The ADX (Yellow Line) is at 23.3 and ABOVE its 9 Period EMA (White Line) which is at 22.2.
We can clearly see that the ADX (Yellow Line) is above the 20 Threshold, this indicates that the trend on this daily chart is strong at the moment. Notice, that the 9 Period EMA (White Line) has crossed back under the ADX (Yellow Line) indicating increased strength.
At the moment of typing this, the +DI (Green Line) is above its -DI (Red Line) and the ADX (Yellow Line) is above the 20 Threshold and has crossed back above its 9 Period EMA (White Line). This is telling me that if the +DI (Green Line) stays above its -DI (Red Line) then ADA may soon be in for another massive upwards momentum spike where we see the ADX (Yellow Line) shoot up exponentially on the daily chart to possibly the 40-60 range. Looking at the history of the ADX DI indicator on this daily chart, we can say that if the ADX (Yellow Line) goes to the 60 range then we could be looking at around a +250% move upwards, If the ADX (Yellow Line) goes to the 40 range the we could be looking at around a +150% move upwards.
Like all my previous post, this is more of an educational post showing why i like the ADX DI indicator, because it not only shows whether the momentum is positive or negative, but also how strong that positive or negative momentum is.
Also, best to buy some ADA before is too late 👍
I hope this post is helpful with your trading or hodl-ing 🔥🚀🌍🌔🪐🛸👽
NOTES:
ADX (Yellow Line) = Trend Strength
+DI (Green Line) = Positive Momentum
-DI (Red Line) = Negative Momentum
Dashed White Line = Threshold Level set to 20
Extra added:
EMA (White Line) = 9 Period Exponential Moving Average
A closer Look at the ADX DI
Here are some of the Different ADX indicators available on TraidingView. The ADX indicator & the DMI indicator are the default TradingView versions and the others are created by users.
Note
To add the 9EMA onto the ADX DI Indicator: Open the indicator drop down menu on the top left of the main chart, you'll then get a menu on the left hand side of the ADX indicator. Hover your mouse over that & click on the 3 parallel dots, click add indicator and type in Exponential Moving Average, click on the EMA to add to the indicator, then click the EMA 9 which will now be on the left of the ADX indicator, Double click and change source to ADX+DI: ADX. 👍 You can also change the colour and opacity of each line in the ADX and EMA 9 menus. 👍
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.