What is Death X?
A bearish signal occurring when the 50-day moving average crosses below the 200-day moving average.
Think of it like this
Like when a sprinter falls behind the marathon runner - short-term momentum losing to long-term trend.
Formula
SMA(50) crosses below SMA(200)- SMA(50): Short-term trend (50 trading days)
- SMA(200): Long-term trend (200 trading days)
Why it matters
- Major bearish technical signal
- Often marks start of long-term downtrends
- Widely watched, can trigger selling
- Confirms bearish trend change
What's a good value?
Cross Confirmed
Bearish
New downtrend beginning
Approaching
Warning
Bearish signal may be imminent
SMA50 < SMA200
Downtrend
Currently in bearish configuration
SMA50 > SMA200
Uptrend
Currently in bullish configuration
Real-world example
The 2008 financial crisis was preceded by a death cross in major indices.
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