Technical indicators

Signal line

Defined in 1 lesson · Updated October 17, 2026

Definition

A 9-period EMA of the MACD line. It is smoother and slower, so the MACD line crossing it marks a change in short-term momentum.

Example

Say a stock’s MACD line is at 0.45, just under its signal line at 0.50, when a strong candle lifts MACD to 1.00. The signal line, a 9-period EMA, weights the new value by 2 ÷ 10 = 0.2 and only rises to 0.60, leaving MACD above it: a bullish crossover. The same lag that smooths the line means every crossover comes after MACD itself has turned.

Hypothetical numbers, for illustration only.

An uptrend with a fast EMA (solid line, labeled EMA 9) and a slower EMA (dashed line, labeled EMA 20); price pulls back to the fast EMA, holds it and prints a buy signal.

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