Trigger Line

Filed Under » , , ,
Dictionary Says

Definition of 'Trigger Line'

A moving-average line found in the moving average convergence divergence (MACD) theory, which is used to signal buy or sell points for a security. The trigger line interacts with the two moving averages that form the MACD line and attempts to predict upcoming trends.
Investopedia Says

Investopedia explains 'Trigger Line'

The trigger line provides traders with technical insight on when to long or short a stock. A common use of the trigger line is found in crossovers. When the trigger line crosses above the MACD line, a buy signal is sent, indicating that a trader should purchase the stock. Inversely, the trigger falling below the MACD represents a bearish trend, where the trader should short the stock.

Articles Of Interest

  1.

    A Primer On The MACD

    Learn to trade in the direction of short-term momentum.

  2. Momentum Trading With Discipline

    This type of strategy demands controlled decision-making, requiring a continual refinement of entry and exit techniques.

  3. Using Pivot Points For Predictions

    Learn one of the most common methods of finding support and resistance levels.

  4. Trading The MACD Divergence

    Currency traders can use this method to avoid stop-order triggers before the real reversal.

  5. MACD Histogram Helps Determine Trend Changes

    Learn how this momentum indicator is used to determine price action on a stock.

  6. Introduction to Types of Trading: Technical Traders

    Learn about the different traders and explore in detail the broader approach that looks to the past to predict the future.

  7. When To Short A Stock

    Learn how to make money off failing shares.

  8. A Top-Down Approach To Investing

    Use a global view to determine which stocks belong in your portfolio.

  9. Yield Investing: Dividend, Earnings And FCF

    There are numerous ways to value investments, and many investors prefer a specific valuation method. Yield investing is one way to value a stock by comparing the current price to various factors. ...

  10. Top 4 Most Scandalous Insider Trading Debacles

    Here we look at some of the landmark incidents of insider trading.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Network Effect

    A phenomenon whereby a good or service becomes more valuable when more people use it. The internet is a good example...

  2. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  3. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  4. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  5. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  6. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...
Trading Center