Updated: September 3, 2022
Bitcoin is the world’s most-traded cryptocurrency which represents a massive share of the cryptocurrency market. It was the first cryptocurrency that was introduced to the public and has therefore the most developed infrastructure. It is often considered to be a trendsetter in the cryptocurrency world. Bitcoin essentially created an alternative asset class and can be used in portfolio hedging strategies, especially during turbulent markets. (Source: Trading View)
At Global Accountancy Institute, Inc., we believe that each trade should have a name. Hence within our trading models, we have four(4) types of trades that we execute daily.
These are:
- Global Micro-Trend Trades
- Global Short-Term Trend Trades
- Global Medium-Term Trend Trades
- Global Long-Term Trend Trades.
The Global Micro-Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #0,#1 & #2 which trade in the direction of our Four Hour Time Bars(FHTB) with a Trailing Stop Loss given by four(4) times the Daily Average True Range(DATR) using period 25.
The Global Short-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #3 which trade in the direction of our Daily Time Bars(DTB) with a Trailing Stop Loss given by five(5) times the Daily Average True Range(DATR) using period 25.
The Global Medium-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #4 which trade in the direction of our Weekly Time Bars(WTB) with a Trailing Stop Loss given by six(6) times the Daily Average True Range(DATR) using period 25.
The Global Long-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #5 & #6 which trade in the direction of our Monthly Time Bars(MTB) with a Trailing Stop Loss equal to seven(7) and eight(8) times the Daily Average True Range(DATR) using period 25.
Our Global Algorithmic Trading Software (GATS) #5 on September 03, 2022, indicates the following for Bitcoin
The Long Term Trend (LTT): Bearish
The Medium Term Trend (MTT): Bearish
The Short Term Trend (STT): Bearish
The Micro Trend (MT): Bearish
We are currently Bearish on Bitcoin and hence decide to execute a long term Bearish trade with a potential trade entry signal as follows:
Global Potential Trade Entry Signal #1:17575
Global Maximum Catastrophe Hard Stop Loss GAP:6613
Global Maximum Catastrophe Trailing Stop:6613
Global Minimum Profit Target: 6613
Global Maximum Profit Target: 13226
Current Price as at September 03,2022:19788
Bitcoin could drop by a further $6613 to a low of $13,175 within a few weeks if we break the current support level at $17575.
$13175 is a dangerous level since many bulls will give up and sell Bitcoin.
RISK WARNING!
There is a substantial risk of loss in futures and Forex trading. Online trading of stocks and options is extremely risky. Assume you will lose money. Don’t trade with money you cannot afford to lose.
The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security.
To the extent that this material discusses general market activity, industry or sector trends, or other broad-based economic or political conditions, it should not be construed as research or investment advice.
To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by Global Accountancy Institute, Inc. or Global Financial Engineering, Inc. to buy, sell or hold such investments.
This material does not and is not intended to take into account the particular financial conditions, investment objectives, or requirements of individual customers.
Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.