Death Cross

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Definition of 'Death Cross'

A death cross is a technical indicator that signals a potential bearish trend reversal. It is created when the 50-day moving average crosses below the 200-day moving average.

The death cross is considered a bearish indicator because it suggests that the short-term trend is now in decline and that the long-term trend is also turning down. This can be a sign that the market is entering a bear market, which is a period of prolonged decline in stock prices.

However, it is important to note that the death cross is not always a reliable indicator. It can sometimes be triggered by a false signal, and it is not always followed by a decline in stock prices. Therefore, it is important to use the death cross in conjunction with other technical indicators and fundamental analysis in order to make a more informed investment decision.

Here are some additional details about the death cross:

* The death cross is a bearish indicator, but it is not always accurate. It can sometimes be triggered by a false signal, and it is not always followed by a decline in stock prices.
* The death cross is created when the 50-day moving average crosses below the 200-day moving average.
* The 50-day moving average is a measure of the average price of a stock over the past 50 days.
* The 200-day moving average is a measure of the average price of a stock over the past 200 days.
* The death cross is considered a bearish indicator because it suggests that the short-term trend is now in decline and that the long-term trend is also turning down.
* The death cross can be a sign that the market is entering a bear market, which is a period of prolonged decline in stock prices.
* It is important to use the death cross in conjunction with other technical indicators and fundamental analysis in order to make a more informed investment decision.

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