Death Cross
The 50-day moving average crossing below the 200-day moving average — a widely-watched long-term bearish signal.
A Death Cross is the bearish mirror image of the Golden Cross: the 50-day SMA crosses below the 200-day SMA. It signals that medium-term selling pressure has overwhelmed the long-term trend.
Like the Golden Cross, it is a lagging indicator — it confirms a downtrend that is already maturing. Reactive traders use it as a filter to avoid long positions or to maintain a bearish bias. Contrarians note that by the time a Death Cross prints, the worst of the drawdown is often already priced in, making aggressive shorts risky near that signal.
Related Terms
Downtrend
A market structure defined by lower highs and lower lows, reflecting sustained selling pressure.
BeginnerGolden Cross
The 50-day moving average crossing above the 200-day moving average — a widely-watched long-term bullish signal.
IntermediateMoving Average
The average closing price over N periods, updated each bar — smooths noise and exposes the underlying trend direction.
BeginnerReversal
A sustained change in the direction of the prevailing trend, not just a temporary counter-move.
Intermediate