What is EMA death cross? — chart signal explained
This signal watches how two recency-weighted moving averages (EMAs) — one spanning 20 candles, one spanning 50 — sit relative to each other. Fast line above slow line is generally taken as an up-leaning market; fast below slow, a down-leaning one.
When does it fire? — BaroBara criteria
It fires on the first candle where the 20-candle EMA slips below the 50-candle EMA, after sitting at or above it on the previous candle.
How traders usually read it
With the short-term trend dipping under the long-term one, it's widely read as a warning that the broader direction may be turning down. It's well-known enough that 'death cross' headlines regularly make the financial news.
What to watch out for
It shows up late, only after a sizable decline — so it's not rare for the signal to coincide with a short-term bottom. If the drop ends quickly, a golden cross follows soon after, and that round trip can hurt you on both sides.
What the data actually shows (LTC 1h)
The common reading is a drop — but what actually happened matters more. This signal has fired 241 times on LTC 1h; across the most recent 241, price reached the small target (+0.25%) first about 45% of the time. Widen the target to ±1% and it becomes about 48%. A historical probability, not a guaranteed direction — and it shifts with market regime.
Odds and expected value — with symmetric target and stop (±)
Exactly the barobara framing: which side got hit first, +X% or −X%. Target and stop are set to the same %, and the win rate is how often the upside (+X%) was reached first.
| Target = stop (±) | Win rate (+ first) | EV (before fees) |
|---|---|---|
| ±0.25% | 45% | -0.02% |
| ±0.5% | 49% | -0.01% |
| ±0.75% | 52% | +0.03% |
| ±1% | 48% | -0.04% |
| ±1.5% | 47% | -0.09% |
| ±2% | 49% | -0.04% |
Broken down by market regime
⚠️ This table uses a different basis than the symmetric (±) table above — a small +0.25% target with a wide −2.5% stop (fees included). The small target makes the win rate look high while EV is often negative — exactly what signal groups hide. And the same signal behaves differently across regimes.
| Regime | Win rate (+0.25% target) | EV (−2.5% stop) | Sample |
|---|---|---|---|
| Bear market | 89% | -0.11% | N=64 |
| Sideways | 89% | -0.10% | N=84 |
| Bull market | 90% | -0.09% | N=88 |
Recent occurrences
How far price actually moved the last few times this signal fired (MFE = maximum favorable excursion).
| Date | MFE | Result |
|---|---|---|
| 2026-07-07 | 1.56% | ✅ hit |
| 2026-07-12 | 3.79% | ✅ hit |
| 2026-07-17 | 1.05% | ✅ hit 🔴 stopped |
| 2026-07-22 | 0.64% | ✅ hit |
| 2026-07-23 | 1.37% | ✅ hit |
| 2026-07-27 | 1.31% | ✅ hit |
| 2026-08-03 | 0.88% | ✅ hit |
| 2026-08-10 | 0.77% | ✅ hit |
Strong conditions only, with past probability, sample size and validity window