How to Set Up (3 Steps)
- •Step 1: Search for any stock you own or watch on StockAlert.pro (e.g., PTON, CVNA, W)
- •Step 2: Select "Death Cross" alert type (triggers when 50-day MA crosses below 200-day MA)
- •Step 3: Choose notification method (email or SMS) and save
Done! You'll receive alerts when the 50-day MA crosses below the 200-day MA. Check 200MA slope before acting - declining = real signal, rising = possible false breakdown.
Example: Peloton Death Cross February 2022
- •Setup: PTON 50-day MA approaching 200-day MA at $32 after peak-to-trough decline from $170
- •Signal: 200-day MA declining sharply, fundamentals deteriorating, post-pandemic reality setting in
- •Alert Trigger: 50-day MA crossed below 200-day MA on 18M shares (1.9x average volume)
- •Result: Investors who exited saved -78% decline to $7 over 9 months; 'dip buyers' lost $25/share
- •Key Insight: Death cross confirmed distribution already underway - it cut through hopeful narratives
Scenario Guide
| Scenario | Volume | 200MA Slope | Example | Action |
|---|---|---|---|---|
| Distribution Exit | >1.8x average | Declining | PTON Feb 2022, -78% followed | Exit 100% within 3 days |
| False Breakdown | <1.2x average | Rising | Cross in strong bull market | Tighten stop, don't panic |
| Bear Rally Setup | >1.5x average | Declining | Cross, then 2-week rally | Short at 50MA resistance |
| Capitulation Bottom | >2x average | Declining sharply | Cross + RSI <25 oversold | Wait - possible reversal |
| Sector Rotation | >1.5x average | Flat | First sector stock to cross | Exit - rotation out of sector |
When to Use
- •You own positions and want early warning when trend shifts to bearish
- •You need rules-based exit signals to remove emotion from selling decisions
- •You're watching stocks for potential short setups after bear market rallies
When Not to Use
- •200-day MA is still rising (50% false breakdown rate - trend still bullish)
- •S&P 500 is in a strong bull market (individual death crosses fail 55-60%)
- •RSI is already extremely oversold (<25) - capitulation likely complete, bounce probable
Conclusion
Death crosses are defensive tools, not predictive. They confirm distribution already underway. Exit longs immediately when 200MA is declining, but hold with tight stops when 200MA is rising. Defense beats offense in bear markets.