GLOSSARY

SIGNAL LINE

31 May 2016 By PDSNET

A moving average superimposed on an indicator, generating buy and sell signals. Two indicators which use a signal line are the MACD and the stochastic oscillator. Generally a buy signal occurs when the indicator cuts the signal line and moves above it. The opposite is true of a sell signal, which occurs when an indicator cuts the moving average on the downside so that the moving average is now on top of the indicator.



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