Signal Line
A moving average of an indicator's own values, plotted alongside it to mark where the indicator turns relative to its own trend.
How it is identified
Signal Line = Moving Average of the Indicator's values over a stated period
Unit
qualitative
In depth
A signal line adds a second layer of smoothing on top of an already smoothed series, which reduces false crossings and adds further lag — the same trade-off as everywhere else in this category. Its most familiar use is the 9-period EMA of the MACD line, whose crossings are what most users actually watch. Because it is derived from an indicator that is itself derived from price, a signal line is two transformations away from any market event. It exists to make an indicator's turns legible, not to add information.
Worked example
A MACD line at 3.2 with a 9-period signal line at 2.8 sits above its own average. When the MACD falls to 2.6 while the signal is at 2.7, the lines cross — a fact about the smoothed series, not about the stock.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Signal Line” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.