Investor Glossary-signal lineInvestor Glossary-signal lineInvestor Glossary-signal lineInvestor Glossary-signal lineInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Signal Line

The HTML to link to this page
 

A signal line is a term commonly encountered in technical analysis. Technical investors use a signal line to help them decide when to buy a stock or sell a stock. In general, a signal line is derived by plotting a moving average against a technical indicator. The Moving Average Convergence Divergence (MACD) indicator and the stochastics oscillator are among the most frequently used indicators to generate a signal line. A MACD signal line is based on the difference between a short term moving average and long term moving average. A stochastics oscillator signal line assesses a stock's momentum by relating the current price of a stock to its price range, with the aim of predicting turning points. In both cases, indicators that cross above their signal line are considered a "buy." Indicators that cross below their signal line are considered a "sell." The triple exponential (TRIX) is also sometimes used with a signal line. Some investors refer to a signal line as a "trigger line."



Rate this Signal Line definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: reverse mortgage, deferred revenue, 144a, current ratio, required rate of return, option premium, implied volatility, class C shares, ex-dividend, inflation, per diem, balance sheet, in escrow, cancelled check, margin rate, FICO score, stock split, 1035 exchange, average price per share, retained earnings, real GDP, 1031 exchange, Zero Cost Collar, ex-dividend date, 401a, LIBOR, open position, annual return, stock market close, deferred tax, minority interest, covered put, irrevocable trust, VIX, FTSE, liquidity ratio, wholly-owned subsidiary, APR, diluted share, limit order, command economy, debt service coverage, quality assurance, EBITDA, Key Rate Duration, phantom income, risk management, labor relations, dividends payable


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use