Death Cross

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DEFINITION of 'Death Cross'

A crossover resulting from a security's long-term moving average breaking above its short-term moving average or support level.

Death Cross

INVESTOPEDIA EXPLAINS 'Death Cross'

As long-term indicators carry more weight, this trend indicates a bear market on the horizon and is reinforced by high trading volumes. Additionally, the long-term moving average becomes the new resistance level in the rising market.

RELATED TERMS
  1. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth ...
  2. Indicator

    Statistics used to measure current conditions as well as to forecast ...
  3. Bear

    An investor who believes that a particular security or market ...
  4. Golden Cross

    A crossover involving a security's short-term moving average ...
  5. Volume

    The number of shares or contracts traded in a security or an ...
  6. Long Term

    Holding an asset for an extended period of time. Depending on ...
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