What exactly is Death Cross in market parlance?

 

What exactly is Death Cross in market parlance?

© Kshitij Anand What exactly is Death Cross in market parlance?

Death Cross is a bearish chart pattern and is exactly opposite to Golden Cross. It is a technical chart pattern that indicates that the underlying security, which could be a stock or index, might remain under pressure. The death cross appears on a chart (could be daily/weekly/monthly) when a stock’s short-term moving average moves or crosses below the long-term moving average. The most common moving averages used in the pattern are 50-days moving average (short term), and 200-days moving average (long term). Death Cross signifies that the momentum in the stock or an index is slowing down, and it is time to turn cautious.