A death cross is a chart pattern used in trading to indicate a potential transition from a bull to a bear market. It occurs when a short-term moving average, usually the 50-day simple moving average, crosses below a long-term moving average, typically the 200-day simple moving average. The death cross is a lagging indicator, meaning that it reflects a stocks past performance and not its current or future performance. It is a bearish signal that indicates a decline in short-term momentum and a trend toward lower prices. However, it is not necessarily bad news since lower prices provide the opportunity to buy at discounted prices. Traders use both death crosses and golden crosses to help determine when to enter and exit an asset. A golden cross occurs when a short-term moving average crosses over a major long-term moving average to the upside and is interpreted by analysts and traders as signaling a definitive upward turn in a market.