The Draw Of The 200 Day Moving Average

This post is by Howard Lindzon from Howard Lindzon

Quick Note – Yesterday I made a mistake when I sad four of our fund 4 companies had recently raised financing. The companies are in fact in our fund 3.


The other day Tesla fell back below it’s 200 day moving average.

I mentioned in the tweet that Ethereum would at some point in the next year do the same. One of the main reasons I will sell a security or token on the way up is when it gets too stretched from it’s 200-day moving average.

I can’t explain why other than the sense of gravity from watching thousands of charts over the years.

This morning Ethereum is down another 25 percent to $2,500 and screaming to its 200 day moving average which is still much lower. I had no idea this type of drop would happen so quickly. The 200 day moving average is rising quickly considering it was $500 in November, but the lesson remains to keep an eye on the 200 day moving average of the securities in your portfolio.