Dead Cross
A "Dead Cross" is a technical analysis term used in financial markets, particularly in stock trading. It occurs when a short-term moving average, such as the 50-day moving average, crosses below a long-term moving average, like the 200-day moving average. This crossover is often interpreted as a bearish signal, indicating that the asset's price may continue to decline.
Traders and investors watch for the Dead Cross as it can suggest a shift in market sentiment. It is the opposite of a "Golden Cross," where the short-term moving average crosses above the long-term moving average, signaling potential upward momentum.