Death Crossover: Theory & Usage

The Death Crossover is a bearish signal that occurs when the 50-period Exponential Moving Average (50-EMA) crosses below the 200-period Exponential Moving Average (200-EMA) . This crossover indicates that the short-term price momentum is weakening and that a downtrend may be beginning.

How Traders Use It:
* Entry Point : Consider selling or shorting when the 50-EMA crosses below the 200-EMA.
* Stop-Loss : Place a stop-loss above the 200-EMA line to manage risk.
* Target Price : Use previous support levels or other technical indicators to estimate the target.

The Death Crossover is widely used in downtrending markets to signal the continuation of the bearish trend.