Death Cross is a technical analysis indicator used in the stock market to signal a bearish trend. It is formed when a short-term moving average (such as the 50-day moving average) crosses below a long-term moving average (such as the 200-day moving average). This indicates that the short-term trend has shifted to a downward direction, and that the stock is likely to continue to decline in the near future. The Death Cross is the opposite of the Golden Cross, which signals a bullish trend.
History of the Death Cross
The Death Cross has been used by traders for centuries, and is one of the oldest technical analysis indicators. It was first used by Japanese rice traders in the 17th century, and has since become a popular tool for traders of all kinds. The Death Cross is often used in conjunction with other technical indicators, such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD).
The Death Cross is a technical analysis indicator used to signal a bearish trend in the stock market. It is formed when a short-term moving average crosses below a long-term moving average, and is the opposite of the Golden Cross. Traders often use the Death Cross in conjunction with other technical indicators to help them make informed trading decisions. For more information about the Death Cross, traders can visit websites such as Investopedia and The Balance.
- Golden Cross
- Relative Strength Index (RSI)
- Moving Average Convergence Divergence (MACD)
- Technical Analysis
- Bearish Trend
- Bullish Trend
- Support and Resistance
- Candlestick Patterns