Glossary
 
Institutional Energy Futures Analysis


Support and Resistance
 
Three levels of significance are utilized with our Support and Resistance numbers.
 
The first is denoted with normal text
The next level of significance is denoted with bold and italicized text
The most significant SUP and RES levels are denoted with bold and underlined text
 
The support and resistance levels that are hyphenated represent a cluster than contains two or more support or resistance points. Clusters such as this tend to carry more significance.
 
Market Parameters
 
Three different timeframes are referenced in this section. The approximate timeframes that each of these is intended to address are as follows:
 
Short term                     2 days to 2 weeks
Intermediate term          2 weeks to 2 months
Long term                      2 months to 1 year
 
Trading Discussions
 
Capstone’s analysis is intended to help professional energy traders and risk managers make the most informed hedging and trading decisions possible. This Trading Discussion section is intended to facilitate this process by identifying key buy and sell points, profit targets, as well as protective stop loss parameters. In addition the variability of position size and timeframe is intended to give additional perspective on market expectations and confidence levels.
 
With regard to position size; the following terms should be understood to approximate the following percentages:
 
Small        25%                        Medium            50%
Large        75%                        Max                  100%
 
Where a price range is provided for the purposes of trade entry or exit, then the assumption is that an equally scaled approach is to be utilized in that range.
 
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