The Global Algorithmic Fair Value Model (GAFVM) is a Proprietary mathematical tool that estimates the fair value of a financial instrument. This model is incorporated within the Global Algorithmic Trading Systems which was designed by Dr. Glen Brown.

The Global Algorithmic Fair Value Model (GAFVM) gives us three(3) values namely: Upper Fair Value(UFV), Mid Fair Value(MFV), and Lower Fair Value(LFV). These values are then incorporated into other Models for example our Global Forecast Price Projection Model(GFPPM).

Our Forecast Price Projection is derived from the following formulae.

Projection Low = Current Market Price(CMP) – ((Upper Fair Value(UFV) – Current Market Price(CMP))

Projection High = Current Market Price(CMP) + ((Current Market Price(CMP) – Lower Fair Value(LFV))

Our Global Valuation Gap(GVG) is the difference between the Current Market Price(CMP) and Upper or Lower Fair Value.

Let us now look at an example.

Example#1: GBP/USD Price Projection Low

At the time of writing this article, October 10, 2022, the GBP/USD was in a major downtrend with a Current Market Price(CMP) of 1.10915.

At this date our Global Algorithmic Fair Value Model (GAFVM) indicates the following:

Upper Fair Value(UFV) = 1.24017, Mid Fair Value(MFV) = 1.2345 and Lower Fair Value(LFV) = 1.2277

Based on the above, we can calculate the potential low for GBP/USD.

GBP/USD Projection Low = Current Market Price(CMP) – ((Upper Fair Value(UFV) – Current Market Price(CMP))

GBP/USD Projection Low = 1.10915 – (1.24017 – 1.10915) = 1.10915 – 0.13102 = 0.97813

From the above, we at Global conclude that we could see the GBP/USD trading at 0.97813 in the near future.

Example #2: Bitcoin Price Projection Low

At this date our Global Algorithmic Fair Value Model (GAFVM) indicates the following Bitcoin:

Upper Fair Value(UFV) = 27084, Mid Fair Value(MFV) = 26431 and Lower Fair Value(LFV) = 25790

Based on the above, we can calculate the potential low for Bitcoin using Current Market Price(CMP)=19426.

Bitcoin Price Projection Low = Current Market Price(CMP) – ((Upper Fair Value(UFV) – Current Market Price(CMP))

Bitcoin Price Projection Low = 19426 – (27084 – 19426) = 19426 – 7658 = 11768

From the above, we at Global conclude that there is a high probability that we could see Bitcoin trading at 11768 in the near future.

This is just one of the applications of the Global Algorithmic Fair Value Model (GAFVM)