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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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