Stocks; Share-Price prediction and the Death Cross
A death cross occurs when the 50-day moving average (DMA) , which many chart watchers use as a short-term trend tracker , crosses below the 200-DMA , which is widely viewed as the dividing line between longer-term uptrends and downtrends . The idea is the cross marks the spot when a shorter-term selloff transitions to a l onger-term downtrend . Crosses aren’t necessarily good market-timing indicators , however, as they are well telegraphed, but they can help put a selloff in historical perspective. Trend traders attempt to isolate and extract profit from trends. 4 certain trend indicators have stood the test of time and remain popular among trend traders. 1. Moving Averages 2.