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. Indicator

    Indicators are statistics used to measure current conditions ...
  2. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth ...
  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. Crossover

    The point on a stock chart when a security and an indicator intersect. ...
  6. Long Term

    Holding an asset for an extended period of time. Depending on ...
RELATED FAQS
  1. Why is the 200 Simple Moving Average (SMA) so common for traders and analysts?

    Learn about the 200 simple moving average (SMA), how it is utilized by traders and analysts, and why it is considered to ...
  2. What is the difference between a Golden Cross and a Death Cross Pattern?

    Learn the difference between the golden cross and the death cross, both of which are considered important technical indicators ...
  3. How are Golden Cross patterns interpreted by analysts and traders?

    Learn why the golden cross is considered a major technical indicator of a bull market in an individual stock, market index, ...
  4. How can traders profit from a death cross pattern?

    Seek long-term profits by using the death cross pattern to identify either a trading entry point or a major resistance level ...
  5. What does it mean when an index or stock exhibits a death cross?

    Find out what it means when an index, stock or exchange exhibits a death cross pattern between its short-term and long-term ...
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