Signal Line

Business, Legal & Accounting Glossary

Definition: Signal Line


Signal Line


Full Definition of Signal Line


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.”


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/signal-line/
Modern Language Association (MLA):
Signal Line. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 19, 2024 https://payrollheaven.com/define/signal-line/.
Chicago Manual of Style (CMS):
Signal Line. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/signal-line/ (accessed: April 19, 2024).
American Psychological Association (APA):
Signal Line. PayrollHeaven.com. Retrieved April 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/signal-line/

Definition Sources


Definitions for Signal Line are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th February, 2020 | 0 Views.