Death cross refers to a bearish technical analysis indicator used to find big sell-offs. A death cross occurs when the 50-day moving average falls below the 200-day moving average. In easier terms, the faster moving average is crossed by the slower moving average.
It is evident that traders find the perfect time right after the death cross, to square off their positions before the market takes a downward trend. Still, a death cross is not a definite indicator to ensure that the bull market has come to a halt.
Not to mention, death cross can also be identified using other indicators as well. Making a crossover between the 30-day moving average and 100-day moving average can also be used as a reliable indicator for a death cross indicating a bearish market.