- The Death Cross
The Death Cross is a pattern that appears on the chart when the 50-day moving average crosses below the 200-day moving average and both lines are falling.
The Death Cross indicates that a downtrend has formed on the chart.
Similar to moving averages with 50 and 200 days, you can use two moving averages of different periods. We’ll use the same example with two SMA: “fast” with a period of 5 and “slow” with a period of 15. If the “fast” SMA crosses the slow one going downwards and both moving averages are pointed downwards, the asset price is likely to fall. You can then open a Down trade.