Death Cross
The crossing of a shorter moving average below a longer one, conventionally the 50-day below the 200-day.
How it is identified
Test: 50-period Moving Average crosses from above to below the 200-period Moving Average
Unit
qualitative
In depth
The mirror of the golden cross, and equally lagging: the decline that produces it has usually already run a long way. Its dramatic name gives it media prominence, which is worth noting as a fact about coverage rather than about markets. The same criticism applies as to any crossover — in a range the two averages cross repeatedly, and every crossing is called a death cross by someone. Nothing here predicts that a decline follows, and the term is recorded as vocabulary rather than as a signal.
Worked example
A stock falls from ₹560 to ₹440, a 21% decline, before the 50-day average finally crosses below the 200-day at around ₹470. The cross reports a fall that is already substantially complete.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Death Cross” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.