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General TradingS
Signal Line
A moving average plotted alongside a technical indicator, most commonly the 9-period exponential moving average (EMA) of the MACD line. When the indicator crosses above the signal line, it generates a bullish signal, and when it crosses below, it generates a bearish signal.
Example
“The MACD line crossed above the signal line on the daily chart, generating a bullish signal that confirmed the trader's decision to enter a long position on Apple stock.”