Death Cross Technical Pattern
Learn about the Death Cross pattern in stock trading - a bearish reversal pattern that occurs when short-term moving average crosses below long-term moving average. Understand how to identify and trade this technical analysis pattern effectively with volume analysis and key indicators.
Recent Death Cross Patterns
15 patterns found
Certara Inc
US
Market Cap: 1.85B
Industry: Health Information Services
Death Cross
7/14/2025
Bearish pattern with short term moving average (50) closing bellow the long term m.a. (200), indicating potential downward momentum
National Health Investors Inc
US
Market Cap: 3.31B
Industry: REIT - Healthcare Facilities
Death Cross
7/14/2025
Bearish pattern with short term moving average (50) closing bellow the long term m.a. (200), indicating potential downward momentum
Union Bankshares Inc
US
Market Cap: 127.35M
Industry: Banks - Regional
Death Cross
7/11/2025
Bearish pattern with short term moving average (50) closing bellow the long term m.a. (200), indicating potential downward momentum
Brown & Brown Inc
US
Market Cap: 30.42B
Industry: Insurance Brokers
Death Cross
7/11/2025
Bearish pattern with short term moving average (50) closing bellow the long term m.a. (200), indicating potential downward momentum
Pearson PLC
GB
Market Cap: 9.71B
Industry: Publishing
Death Cross
7/11/2025
Bearish pattern with short term moving average (50) closing bellow the long term m.a. (200), indicating potential downward momentum
Huazhu Group Ltd
CN
Market Cap: 10.51B
Industry: Lodging
Death Cross
7/11/2025
Bearish pattern with short term moving average (50) closing bellow the long term m.a. (200), indicating potential downward momentum
Santech Holdings Limited
HK
Market Cap: 44.80M
Industry: Software - Application
Death Cross
7/11/2025
Bearish pattern with short term moving average (50) closing bellow the long term m.a. (200), indicating potential downward momentum
Gaming Factory S.A.
PL
Market Cap: 12.25M
Industry: Electronic Gaming & Multimedia
Death Cross
7/11/2025
Bearish pattern with short term moving average (50) closing bellow the long term m.a. (200), indicating potential downward momentum
Belite Bio, Inc
US
Market Cap: 2.03B
Industry: Biotechnology
Death Cross
7/11/2025
Bearish pattern with short term moving average (50) closing bellow the long term m.a. (200), indicating potential downward momentum
Compañía de Distribución Integral Logista Holdings, S.A.
ES
Market Cap: 4.37B
Industry: Integrated Freight & Logistics
Death Cross
7/10/2025
Bearish pattern with short term moving average (50) closing bellow the long term m.a. (200), indicating potential downward momentum
Unimot S.A
PL
Market Cap: 319.53M
Industry: Specialty Retail
Death Cross
7/10/2025
Bearish pattern with short term moving average (50) closing bellow the long term m.a. (200), indicating potential downward momentum
INmune Bio Inc
US
Market Cap: 123.71M
Industry: Biotechnology
Death Cross
7/10/2025
Bearish pattern with short term moving average (50) closing bellow the long term m.a. (200), indicating potential downward momentum
Hamashbir 365 Ltd
IL
Market Cap: 60.69M
Industry: Department Stores
Death Cross
7/10/2025
Bearish pattern with short term moving average (50) closing bellow the long term m.a. (200), indicating potential downward momentum
NorthWestern Corporation
US
Market Cap: 3.22B
Industry: Utilities - Regulated Electric
Death Cross
7/10/2025
Bearish pattern with short term moving average (50) closing bellow the long term m.a. (200), indicating potential downward momentum
Lument Finance Trust Inc
US
Market Cap: 120.35M
Industry: REIT - Mortgage
Death Cross
7/10/2025
Bearish pattern with short term moving average (50) closing bellow the long term m.a. (200), indicating potential downward momentum
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View Full Platform →About Death Cross Patterns
Death Cross patterns are technical chart formations that traders and investors use to identify potential entry and exit points. These patterns are based on historical price movements and can help predict future price direction.
Understanding the Death Cross in Stocks
What is the Death Cross Pattern in Stocks?
The Death Cross pattern is a bearish reversal pattern that occurs when a short-term moving average crosses below a long-term moving average. This pattern signifies a potential downward movement in stock prices and is considered a strong signal of a bearish trend. In stock trading, the Death Cross pattern is significant because it often marks the transition from a bullish phase to a bearish trend. Recognizing this pattern can help traders anticipate price declines and make strategic decisions to protect capital or take advantage of downward price movements.
How to Identify Death Cross Patterns
Identifying the Death Cross pattern involves several key steps:
- Uptrend: Look for a clear uptrend in the stock's price leading into the pattern.
- Short-Term Moving Average: The short-term moving average (e.g., 50-day MA) crosses below the long-term moving average (e.g., 200-day MA).
- Confirmation: The crossover should be accompanied by increased trading volume, confirming the pattern.
Identifying a Death Cross Pattern
In this example, we use a typical stock chart to illustrate the formation of a Death Cross pattern. Key elements to observe include the prior uptrend, the crossover of moving averages, and the subsequent decline in stock price.
- Uptrend: The price of the stock shows a clear upward trend leading into the pattern.
- Crossover: The short-term moving average crosses below the long-term moving average.
- Breakdown Confirmation: The price declines after the crossover, confirming the pattern.
Key Indicators
- Moving Averages: The short-term moving average crossing below the long-term moving average.
- Volume Spikes: Increased trading volume often accompanies the crossover, indicating strong selling interest.
- Resistance Levels: The crossover may occur near significant resistance levels on the chart.
Death Cross Pattern with Volume Analysis
This example highlights the role of volume in confirming the Death Cross pattern. Volume analysis can provide additional confidence in the pattern's validity.
- Uptrend: The price trend is upward, characterized by increasing prices and moderate volume.
- Crossover: The short-term moving average crosses below the long-term moving average with moderate volume.
- Breakdown: The price declines after the crossover with a significant spike in volume, confirming the pattern.
Frequently Asked Questions
What is the Death Cross pattern in stock trading?
The Death Cross pattern in stock trading is a bearish reversal pattern that occurs when a short-term moving average crosses below a long-term moving average. It signifies a potential downward movement in stock prices and is considered a strong signal of a bearish trend.
How reliable is the Death Cross pattern in stocks?
The Death Cross pattern is considered a reliable bearish reversal signal in stock trading, especially when confirmed by increased trading volume and strong price declines after the crossover. However, it should be used alongside other technical analysis tools.
Can the Death Cross pattern appear in any stock?
Yes, the Death Cross pattern can appear in any stock. It is a widely applicable chart pattern used in technical analysis across various assets, including stocks.
What common mistakes should be avoided when trading the Death Cross pattern?
Common mistakes include entering the trade too early before the crossover confirmation, not confirming the pattern with volume analysis, and failing to set appropriate stop-loss levels to manage risk. By understanding and utilizing the Death Cross pattern, traders can better anticipate bearish reversals and optimize their trading strategies for capital preservation and potential gains in a declining market.
What are the key indicators to consider when trading the Death Cross pattern in stocks?
Key indicators include: The short-term moving average crossing below the long-term moving average. Confirming the pattern with increased volume during the crossover. Observing bearish price movements after the crossover. These indicators help validate the Death Cross pattern and provide insights for potential significant price declines.