How to calculate ADX indicator for cryptocurrency trading?

3 answers

• Mills McGuireJan 07, 2025 · 10 months ago
  Sure! Calculating the ADX indicator for cryptocurrency trading involves a few steps. First, you need to gather the high, low, and closing prices of the cryptocurrency over a specific period, usually 14 days. Then, calculate the True Range (TR) for each day, which is the maximum of the following three values: high minus low, absolute value of high minus previous close, and absolute value of low minus previous close. Next, calculate the Directional Movement (DM) for each day, which is the difference between the previous day's high and the current day's high, and the difference between the previous day's low and the current day's low. Finally, calculate the Average True Range (ATR) and the Directional Index (DI) based on the TR and DM values. The ADX indicator is derived from the DI values. It's important to note that there are various software and online tools available that can automatically calculate the ADX indicator for you.
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• Cleberton LopesJul 03, 2021 · 4 years ago
  Calculating the ADX indicator for cryptocurrency trading can be a bit complex, but I'll try to break it down for you. First, you need to gather the high, low, and closing prices of the cryptocurrency over a specific period, typically 14 days. Then, calculate the True Range (TR) for each day, which is the highest value among the differences between the high and low prices, the absolute value of the difference between the high and the previous day's close, and the absolute value of the difference between the low and the previous day's close. Next, calculate the Plus Directional Movement (+DM) and Minus Directional Movement (-DM) for each day based on the differences between the current and previous day's highs and lows. Finally, calculate the Average True Range (ATR) and the Directional Index (DI) using the TR, +DM, and -DM values. The ADX indicator is then derived from the DI values. It's worth mentioning that there are online calculators and trading platforms that can automatically calculate the ADX indicator for you.
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• applzDec 24, 2021 · 4 years ago
  To calculate the ADX indicator for cryptocurrency trading, you can follow these steps. First, gather the high, low, and closing prices of the cryptocurrency over a specific period, usually 14 days. Then, calculate the True Range (TR) for each day, which is the highest value among the differences between the high and low prices, the absolute value of the difference between the high and the previous day's close, and the absolute value of the difference between the low and the previous day's close. Next, calculate the Plus Directional Movement (+DM) and Minus Directional Movement (-DM) based on the differences between the current and previous day's highs and lows. Finally, calculate the Average True Range (ATR) and the Directional Index (DI) using the TR, +DM, and -DM values. The ADX indicator is then derived from the DI values. Keep in mind that there are various online resources and trading platforms that can help you calculate the ADX indicator easily.
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