Trigger Line
Categories: Trading
So...you’re a trader. How do you decide when to go long, and when to go short? The trigger line will help you pull the right...er, trigger.
It’s thought that the trigger line helps spot trend reversals early, making it handy for short-term traders. It's a technical calculation that can be used to determine when to enter or exit a security based on when two lines cross.
One line is the moving average convergence divergence, or MACD. MACD is calculated using two moving averages of a security, creating one trend-following momentum indicator. The other line, the trigger line, is the exponential moving average (EMA) of the MACD over nine periods, which some traders use to predict future price trends. Although, you can set your trigger line to whatever you want if you prefer to adjust it yourself.
When the trigger line crosses the MACD line, it’s time to move, move, move! When the trigger line rises above the MACD, things are looking bearish...better short the stock. When the trigger line falls below the MACD line, things are looking bullish...better buy and hang on for dear life.
Related or Semi-related Video
Finance: What are Triple Bottom and Trip...2 Views
Finance allah shmoop what are triple bottom and triple tops
All right well this is a triple top It wants
to break out The stock was trading down here around
five bucks a share in and glam o it went
up And yes blam o is the name of the
company's new anti constipation drug a huge hit So it
went up up up to hear it Fifteen bucks tripled
in value in just a few months but then sober
reality began to hit the investing community There simply wasn't
enough constipation to go around So the stock began to
flag and traded down teo here this level at twelve
bucks But then glam o again released big news a
partnership with manish of its grandma tsa and the american
cheese manufacturing association So the stock raced again to fifteen
But no there just wasn't enough enthusiasm from buyers pay
more than fifteen bucks a share for it So you
know that's all despite this newly created a kind of
market So the stock sank back to twelve only to
then have investment interest from procter and gamble owners of
sharman who bought five percent of the company at thirteen
fifty ish year and left a lot of investors thinking
surveyed by the whole company complete with its product line
of anti constipation drinks Waymo glam Oh thankyou memo But
alas the investment community would not pay up past fifteen
to share and the stock flagged again sinking back to
twelve having created a triple top and needing something to
make things really start you know going So yeah that's
a triple top What about a triple bottom Well a
triple bottom and basically just the same thing in reverse
like this keeps hitting a low point looking like it's
going tio bottom out further But then it recovers on
the subject of bottoming out well glam o is now
available in new chewable gummy form Yeah glam o so
you never have to worry when your bottoms out