Signal lines are used in technical indicators, especially oscillators, to generate buy and sell signals or suggest a change in a trend. They are called signal lines because when another indicator or line crosses them it is a signal to trade or that something potentially important is happening with the price of an asset. It could be that the price was trending, pulled back, and is now starting to trend or again, or it could signal that a new uptrend or downtrend is starting.
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