2024 Trader’s Guide to Understanding the Death Cross Pattern
Like two sides of the same coin, the death cross is the bearish version of the golden cross. A golden cross forms when the 50-period simple moving average crosses up through the 200-period moving average, triggering the breakout and uptrend. As illustrated on all charts, these two patterns can alternate back and forth since stocks don’t tend to uptrend or downtrend forever. The death cross is a chart pattern and technical analysis term that can apply to all financial trading instruments. It’s a pattern identified on a stock trading chart with two moving average indicators. QQQ fell under the 50-period moving average at $346.01 on April 11, 2022, as it proceeded to fall 28.5% for the following seven months to…