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NISM Certifications · NISM-Series-XV: Research Analyst · Technical Analysis

In the MACD indicator, a bullish signal-line crossover is said to occur when:

A bullish signal-line crossover occurs when the MACD line crosses above its signal line. The signal line is a moving average of the MACD itself, so the crossover indicates upward momentum building. A cross below the signal line is read as bearish.

  1. AThe MACD line crosses above its signal lineCorrect
  2. BThe MACD line crosses below its signal line
  3. CThe signal line falls below zero
  4. DThe 200-day average crosses the 50-day average from above

Explanation

MACD is the difference between a short and long exponential moving average, and the signal line is an EMA of the MACD. When MACD moves above the signal line, momentum is turning upward, which is a bullish signal. The reverse is bearish.

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