When nuclear power plants (NPPs) are in a state of failure, they may release radioactive material into the environment. The safety of NPPs must thus be maintained at a high standard. Online monitoring and fault detection and diagnosis (FDD) are important in helping NPP operators understand the state of the system and provide online guidance in a timely manner. Here, to mitigate the shortcomings of process monitoring in NPPs, five-level threshold, qualitative trend analysis (QTA), and signed directed graph (SDG) inference are combined to improve the veracity and sensitivity of process monitoring and FDD. First, a three-level threshold is used for process monitoring to ensure the accuracy of an alarm signal, and candidate faults are determined based on SDG backward inference from the alarm parameters. According to the candidate faults, SDG forward inference is applied to obtain candidate parameters. Second, a five-level threshold and QTA are combined to determine the qualitative trend of candidate parameters to be utilized for FDD. Finally, real faults are identified by SDG forward inference on the basis of alarm parameters and the qualitative trend of candidate parameters. To verify the validity of the method, we have conducted simulation experiments, which comprise loss of coolant accident, steam generator tube rupture, loss of feed water, main steam line break, and station black-out. This case study shows that the proposed method is superior to the conventional SDG method and can diagnose faults more quickly and accurately.