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LRA - the New and Final Analysis of the Futures Markets?

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LRA - the New and Final Analysis of the Futures Markets?

Postby t8936 » Wed Dec 27, 2017 4:42 pm

Locked-in Range Analysis (abbr. LRA) is the futures market analysis method, described in the ebook "Locked-in Range Analysis: Why most traders must lose money in the futures market (Forex)" by Tom Leksey, which minimizes an uncertainty in the futures market.

LRA is the method of interpreting the price and volume chart to determine the direction of the prevailing volume of open positions, the imbalance of which will enlighten you to future market behavior.

LRA is a cause-and-effect analysis method arising from the basis of the market, therefore, by applying LRA, you will either become one of the professional market participants getting a non-random and repeatable result or you will consciously leave trading for good.
t8936
 
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Re: LRA - the New and Final Analysis of the Futures Markets?

Postby t8936 » Fri Dec 29, 2017 10:02 pm

Example:

Crude Oil Futures
November 2017, 1 Hour
Period: 18 September – 2 October

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Locked-in Range: 51.73-51.30; Sentiment (Doi): Buy (1/3)

Preference: Short positions below resistance LR 51.73-51.30

Comment: The breakout of Low extremum of LR (TPSL 1 Low) and previous swing Low (TPSL 2 Low), the end of next trading day without price return to LR are indicators pointing to the volume imbalance of prevailing “Buy” open positions until the price goes out of LR. There is a probability of having the remaining “Buy” open positions in the range.

Crude Oil Futures
November 2017, 1 Hour
Period: 22 September – 6 October

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Comment: In the moment of price approximation to LR, the volume of the remaining “Buy” open positions had a sufficient influence on the price formation when it is profitable for the market-making system to quote prices below the range.

So this is a simple example that shows a logic of LRA method. I like it.
t8936
 
Posts: 4
Joined: Tue Dec 12, 2017 1:33 pm

Re: LRA - the New and Final Analysis of the Futures Markets?

Postby t8936 » Thu Jan 04, 2018 7:11 am

What is Locked-in Range?

Locked-in Range (abbr. LR) is the trading range in which the volume of open positions accumulates, making the price change to the side where the prevailing volume of open positions will be locked at a loss, because the price will no longer allow to close in profits or break-even.

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Resistance LR is the locked-in range in which the volume of open buy positions prevails, and it is profitable for the market maker to quote prices below the range.

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Support LR is the locked-in range in which the volume of open sell positions prevails, and it is profitable for the market maker to quote prices above the range.

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Open positions, their take-profits and stop-losses are the only true source of information for making decisions on speculative entry into the futures market with the market maker, therefore, those who do not base their trading decisions on it are Lucky-traders.

What is TPSL level?

Take Profit Stop Loss level (abbr. TPSL level) is the price level at which sellers and buyers will exit the market, closing their open positions by take-profits and stop-losses.

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There is no sense in trying to forecast the prevailing open positions in the locked-in range; it is necessary to analyze the price and volume changes after the range breakout and in proximity to the TPSL levels, which will allow to join the further profitable price changes for the market maker.

The logic of price changes in the futures markets, where liquidity is provided by market makers.

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t8936
 
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Re: LRA - the New and Final Analysis of the Futures Markets?

Postby t8936 » Wed Jan 10, 2018 12:46 pm

How LRA works.
Example JPY/USD

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