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


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