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Compliments of
Great Pacific Trading Company
1235 N.E. Sixth Street
Grants Pass, OR 97526
(800) 479-7920
http://www.gptc.com/gptcweb/site-by-site.htm
U.S. Options & Futures | Reading Seasonal Charts
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The seasonal charts depicted in this publication are a pictorial presentation of the normal behavior of the markets. The charts are made for specific contract months, so that the trader can see the behavior of the specific contract they are looking at. This detail is of the utmost importance in markets with new and old crop contracts, such as the agricultural commodities.
The charts depict behavior on a relative basis, meaning the actual prices are not forecast, just the relative position of the market versus its contract high and low. On the seasonal charts, the high is depicted as 1.0, or 100%, while the low is depicted as 0.0 or 0%. Using an 11 month period, we rank all 15 years analyzed in terms of where each day falls as a percentage of the highest and lowest price of that 11 month period for each specific year. These prices are then averaged and the average is depicted in our charts.
To read the chart, just follow the chart and remember that 1.0 is the contract high for the 11 months displayed, and 0.0 is the contract low.
For more information on seasonality visit www.GPTC.com or call (800) 479-7920