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Investment
Death Cross
When a short-term moving average crosses below a long-term moving average, signalling a potential long-term downtrend.
The Death Cross is the bearish version of the Golden Cross. While not perfect, it has correctly signalled many major downturns. Traders often use it together with other indicators like RSI or volume.
It's the warning siren that the fast runner has fallen behind and the race might be turning bad.
Real world: In early 2022 the 50-day moving average crossed below the 200-day on many tech stocks — a Death Cross that warned of the big bear market that followed.
💡 Death Cross is a serious warning — many traders reduce risk or go to cash when they see it.