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

Discussion in 'Trading Systems and Strategies' started by t8936, Dec 27, 2017.

  1. t8936

    t8936 Newbie

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    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.

    This ebook may be published, reproduced or distributed for Free - Download PDF (0.7 MB)
     
    Baro Kissy likes this.
  2. t8936

    t8936 Newbie

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    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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  3. Baro Kissy

    Baro Kissy Newbie

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    Interesting method! Like!
     
  4. Baro Kissy

    Baro Kissy Newbie

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    Gravitation LR (abbr. GLR) is the trading range in which the volume of open “buy & sell” positions accumulates with no significant imbalance, and it is profitable for the market maker to return the price back to the range after the range breakout if there are not enough prevailing loss-making positions to continue price movement in the same direction.

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    Figure. Averaged graphical representation of the gravitation range

    With an increase of a futures liquidity, a probability of strong imbalances in the locked-in ranges decreases, while a probability of an appearance of the gravitation ranges increases. In the future, the gravitation ranges either “lose” open positions and “are canceled”, or turn into the locked-in ranges.

    The market has a trend structure when the unidirectional locked-in ranges prevail, and vice versa, the market has a flat structure when the gravitation ranges prevail.
     

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