What is MACD Dead Cross

 MACD dead cross is opposite to MACD golden cross. If you want to know more about the MACD golden cross, please visit:

http://top5indicators.blogspot.com/2013/09/what-is-macd-golden-cross.html

When the long-term moving average of an index rises sharply and breaks above its short-term moving average, a dead cross is formed.

The following chart shows the two occurrences of dead cross in recent months. Once it is formed, the investors and traders may face substantial loss.

 

                            Source: stockchart.com, compiled by blogger.

Thanks for your reading. If you want to know more about MACD, you can visit:

http://top5indicators.blogspot.com/2013/09/what-is-moving-average-convergence.html

http://top5indicators.blogspot.com/2013/09/how-to-determine-bullish-divergence.html

http://top5indicators.blogspot.com/2013/09/how-to-determine-bearish-divergence.html