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death cross
What does death cross mean?
A death cross is a chart pattern in which a shorter-term moving average (often the 50-day) crosses below a longer-term one (often the 200-day), read as a bearish signal of lower prices. It is the inverse of a golden cross.
"A death cross on the daily chart spooked traders into selling."
Origin
Technical-analysis term; 'death' connotes an ominous, bearish signal.
Frequently asked questions
What is a death cross?
It's a chart pattern where a shorter-term moving average, usually the 50-day, crosses below a longer-term one, usually the 200-day, and it's read as a bearish warning of falling prices.
What's the difference between a death cross and a golden cross?
They're inverses. A death cross is the short average crossing below the long one (bearish), while a golden cross is the short average crossing above the long one (bullish).
Does a death cross always mean prices will drop?
No. It's a signal watched by traders, not a guarantee; it sometimes precedes a decline and sometimes proves to be a false alarm.
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