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Signal Lines

Hey Joe! Last week in your article about MACD, you talked about signal lines. What is a signal line? Is it the same as a Trigger Line?

I'm sorry, I forgot to tell you what Signal lines are. Signal lines are used in technical indicators, especially oscillators, to generate buy and sell signals or suggest a change in a trend. Oftentimes, signal lines are moving averages of a technical indicator, such as the moving average convergence-divergence (MACD) and stochastics oscillator. Yes! A signal line is also commonly known as a "trigger line."


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Wednesday, 01 May 2024

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.