What is a death cross?

The "death cross" is a market chart pattern reflecting recent price weakness. It refers to the drop of a short-term moving average —meaning the average of recent closing prices for a stock, stock index, commodity or cryptocurrency over a set period of time—below a longer-term moving average.

Is the death cross a bullish indicator?

The opposite of the death cross is the so-called golden cross, when the short-term moving average of a stock or index moves above its longer-term moving average. Many investors view this pattern as a bullish indicator, even though the death cross was typically followed by the bigger gains in recent years.

Is a death cross a good signal?

The death cross makes for snappy headlines but in recent years it has been a better signal of a short-term bottom in sentiment than of an onset of a bear market or recession. A death cross is a chart pattern that occurs when a security's short-term moving average drops below its longer-term moving average.

What are golden crosses & death crosses?

Golden crosses and death crosses are used in trading and are a form of technical analysis. A golden cross signals a bull market and a death cross signals a bear market. Both of these are determined by the confirmation of a long-term trend from the occurrence of a short-term moving average crossing over a major long-term moving average.