The Death Cross...
The Death Cross is a widely followed technical signal that occurs when the 50 Day Moving Average crosses the 200 Day Moving Average to the downside on a stock chart.
Since this is a widely followed signal, the potential for future price movements following past price movements after the signal, is greatly increased.
Think about it like this - the more people that jump on a sinking boat, the quicker it will go down...
The information and video below is providied from Market Club and gives further details, along with charts displaying past and current formations.
In today's short video, we look at two important aspects of the market - one is an intraday technique which I will show you how to use to determine where markets will turn, and the other is the infamous "death cross".
The death cross does not occur that often, in fact, in the last 2 1/2 years we've only seen this happen three times. The most recent occurred just last week and is something that every investor and trader should pay close attention to. I believe that this video will help you understand what the death cross is and how you can construct it and use it in your own trading. A lot of traders and investors watch this very closely so you should too.
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All the best,
President of INO.com