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Attachments: Locked-in Range Analysis (LRA)
Exit Attachments

Locked-in Range Analysis (LRA)

Quoting Trader-Waldo
{quote} I looked your marked charts and could not understand logic or relate logic of LRA on those charts ("buy here"). Kindly describe the reasons of LRA when you post chart so I unfamiliar with LRA method can learn. {image}
LRA method tells us how to determine Support LR which 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. So we need to open only Buy positions above support LR if we want our positions not be Lucky. The marked charts above have red color Locked-in Ranges which are Support LRs.
Don't be a Lucky-trader! Just make cause-and-effect trades!
Quoting t8936
{quote} LRA method tells us how to determine Support LR which 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. So we need to open only Buy positions above support LR if we want our positions not be Lucky. The marked charts above have red color Locked-in Ranges which are Support LRs.
I know there is more to the story here that I understand. If what you are saying is doable, that's a powerful edge imo. Could I please have the link to this eBook being referenced in this thread?

How to determine When the range begins to form? - not possible
How to determine width of range? - visually possible
How to determine when the range would end? - this is possible(?) by LRA analysis
How to determine the direction of breakout from the range? - this is possible(?) by LRA analysis

High volume of open sell positions = Support LR
High volume of open buy positions = Resistance LR

Question: How to determine "volume of open sell/buy positions" ?
Staying in my lane...
Quoting stoxos
{quote}
4) If volume on the first level was high then you follow that direction, when a pullback happen you enter 5) Else If volume was low then open a trade for the opposite side
You have serious mistakes in your understanding.

LRA is not VSA, so we don't need to navigate only on volume. Here you need smartness and brains.

If volume on the TPSL 1 Level is high or low that is tells us only the Degree of Imbalance of LR.

Attached Image


Look, I've made edits below.

Attached Image (click to enlarge)
Click to Enlarge Name: 2018-01-13_12-35-33.png Size: 74 KB
Don't be a Lucky-trader! Just make cause-and-effect trades!
Quoting pooh123
{quote} Above all, as I said earlier, there are no Market Makers for currency futures, as I found at CME website.

What is Market-Making? (Definition by Tom Leksey)
Market-making (CME Group) is a centralized automated trading system of placing orders from market participants, which has a common pool of Commercial and Non-commercial accounts, which provides liquidity in the futures market, simultaneously opening new positions (buy/sell) and closing already accumulated positions, so that the shares of profit are distributed between each participant in accordance with the established proportions.

According to the latest definition, market maker means all united participants of market-making on CME Group.

So as you can see anyone could be a Market Maker! Even you And you don't need the permissions of CME Group to pending limit orders.


Quoting pooh123
{quote} The Locked in Range is just a new name for support/resistance zone.


Traditionally many sources tell us that Market is driven by supply and demand or by chaos

But LRA tells us that the market with a market maker presented in graphic form is an inversion of market participants' expectations, expressed in the form of the prevailing volume of open positions.

So this is not just a new name. This is a new undertanding.
Don't be a Lucky-trader! Just make cause-and-effect trades!
Quoting t8936
{quote} According to the latest definition, market maker means all united participants of market-making on CME Group. So as you can see anyone could be a Market Maker! Even you And you don't need the permissions of CME Group to pending limit orders. {quote}
That is totally incorrect. A Market Maker is approved by CME to quote bid and ask price for the same instrument at the same time. And he gets to share the profit from the spread. I'm not allowed to quote bid and ask price at the same price and I don't get to share the profit from the spread and I'm not on their list of Market Makers so I'm definitely not a Market Maker. Again, in today's world, there is no such thing as a Market Maker for currency futures as defined in Tom's book. If you insist on saying every participant is a Market Maker, well, that changes the whole story. This Market Maker from your mouth is totally different from the one portrayed in Tom's book.
Quoting pooh123
{quote} That is totally incorrect. A Market Maker is approved by CME to quote bid and ask price for the same instrument at the same time. And he gets to share the profit from the spread. I'm not allowed to quote bid and ask price at the same price and I don't get to share the profit from the spread and I'm not on their list of Market Makers so I'm definitely not a Market Maker. Again, in today's world, there is no such thing as a Market Maker for currency futures as defined in Tom's book. If you insist on saying every participant is a Market Maker,...
Sorry, but "anyone could be a Market Maker! Even you" was a Metaphor. And I don't mean that "every participant is a Market Maker".

For example, you could ask your question to HSBC's global head of precious metals who says,
“HSBC is an important source of market liquidity without which the spread, between the price at which the current contract is liquidated and a new contract is entered into, could widen dramatically, to the detriment of all participants.”

It was a comment about Silver futures on CME Group (Comex) and there should not be a market maker as CME website tells us.

But the truth is hiding in Delivery reports. So as for currency futures.
Don't be a Lucky-trader! Just make cause-and-effect trades!
Quoting t8936
{quote} It was a comment about Silver futures on CME Group (Comex) and there should not be a market maker as CME website tells us. But the truth is hiding in Delivery reports. So as for currency futures.
CME tell us there are Market Makers. They even provide a directory of those Market Makers with their company name and relevant instruments. Most of those instruments are agriculture products, options and maybe some precious metals but currency futures are definitely not on the list. The statement from HSBC does not necessarily make them a Market Maker for silver futures. Any trader of silver futures can provide liquidity to the market. Considering the trading size of HSBC, they sure provide a lot of liquidity but that doesn't make them an official Market Maker approved by CME.
Quoting pooh123
{quote} CME tell us there are Market Makers.
Ok. Show me that for Silver.

Why are you talking about official MarketMaking? It's not official. The LRA book just introduces usual reader with market makers as official participant. And that is all.
Don't be a Lucky-trader! Just make cause-and-effect trades!
  • Post #69
  • Quote
  • Edited 9:36am Jan 13, 2018 9:16am | Edited 9:36am
Quoting t8936
{quote} You have serious mistakes in your understanding. LRA is not VSA, so we don't need to navigate only on volume. Here you need smartness and brains. If volume on the TPSL 1 Level is high or low that is tells us only the Degree of Imbalance of LR. {image} Look, I've made edits below. {image}
Ah... NOW I see what you're saying... the point you're trying to make. (Which is something I already knew from the MM's objective)

VEEFX. If you'd like I can message you privately to explain what he's saying. To be honest it's something I'm surprised you haven't noticed yet since I had only been learning the Forex market a few months before I started looking for it. It has distinctive characteristics and... yes, it is powerful if you know what you're looking for and where.

Let's just say the MM's can afford to be greedy.
"The fun is in the hunt. Not the kill."
So SHORT STORY, LRA and the author dont have any answer on why things happening. LRA is only an analysis which as many other like it exist only in the mind of the creator. Since we can not prove with real evidence what happening, we just guessing, which in the end is the same you do with Technical or Fundmentals Analysis.

Example:
(Conditional)
If that happens it is probably means that will happen next. No proof just a case, an assumption.

In the image above you corrected me, you said that there are no new positions so there is no new stop losses so it is not profitable for the market maker to quote prices there. That is good logic, still not a single proof of what is happening or what is going to happen. Since you cant see 30 prices below if there are any new MITs added, you assume only. Which is not proof. Also those volume bars dont indicate nothing. You can have 500 lots hitting the bid and only 10 lots lifting the offer and still the price go up 10 ticks if at any ask price there is only one contract available.
So in our chart using time based volume we would see a high volume (which most of the times we assume that it is also high activity (and that is also wrong, we dont know that)) and we will say that probably new SL have been build up lower and with LRA it would be wise to go short only since it is profitable for market maker. But you see all the volume was at bid which means Sell market order so the 500 have 500 SL at higher prices so the real profitable side is long but with LRA logic you would had go short.
Quoting stoxos
So SHORT STORY, LRA and the author dont have any answer on why things happening. LRA is only an analysis which as many other like it exist only in the mind of the creator. Since we can not prove with real evidence what happening, we just guessing, which in the end is the same you do with Technical or Fundmentals Analysis. Example: (Conditional) If that happens it is probably means that will happen next. No proof just a case, an assumption. In the image above you corrected me, you said that there are no new positions so there is no new stop losses...
We're talking metagame here. You have to look for the probabilistic anomalies.

In a game of random behavior... unusual behavior signifies intent.
"The fun is in the hunt. Not the kill."
Quoting t8936
{quote} Ok. Show me that for Silver.
That's exactly the point I've been making-it's not that for every futures instrument there's a Market Maker. I checked CME website again. CME already listed all the Market Makers they've been using and from that list you can see they don't use any Market Makers for currency futures or precious metals. Here is the definition for Market Maker from that LRA book:

A market maker (one type of speculator) is an authorized customer permissioned to quote both the buy and sell side in a given market (while all other market participants may open positions only in one direction – unidirectional). The main function of the market maker is to provide liquidity to the marketplace (сontractual agreement with CME), usually in exchange for a reduction in trading fees. Market makers often profit from capturing the spread, the small difference between the bid and offer prices over a large number of transactions.

Well, based on the above definition I know for sure that I, together with many other participants don't qualify as Market Makers, although we are participants of the futures market.
Quoting Redeflect
{quote} Ah... NOW I see what you're saying... the point you're trying to make. (Which is something I already knew from the MM's objective) VEEFX. If you'd like I can message you privately to explain what he's saying. To be honest it's something I'm surprised you haven't noticed yet since I had only been learning the Forex market a few months before I started looking for it. It has distinctive characteristics and... yes, it is powerful if you know what you're looking for and where. Let's just say the MM's can afford to be greedy.
Thanks bro. You can pm me anytime. My questions in post 33 and 62 are still outstanding. There were all prior to when the OP stated the real definition of MM for the author. As i speculated at the beginning of this thread, i agree to stoxos here. One can make story based on certain assumptions and come up with a strategy. Forums are littered with such stories on how to interpret price. And so are the books. If it is quantifiable then the price interpretation returns closer to the actual reality. If not, traders tend to say "nothing works all the time" a d they are right because they have fucking no idea what price will do next based on order flow. No one does. Interpreting price movement based on order flow or volume or open buy/sell positions based on a time series chat is no different that drawing an imaginary line and trading bounce or breakout from it. I.e. coin toss!
Staying in my lane...
Quoting stoxos
Since we can not prove with real evidence what happening, we just guessing, which in the end is the same you do with Technical or Fundmentals Analysis.
Bravo! At last! Moreover Tom Leksey says, "The market maker always has a planned price trend, based on the current imbalance, but just like other participants, market makers constantly find themselves in a situation of uncertainty in the market; they do not know where will the price go in a minute, hour, day, week, month, or year, as it is decided here and now and depends on the volume of new open positions and the closing of existing ones."

But unlike other methods of analysis, Locked-in Range Analysis is based on the causes and effects, and not on the repeating patterns of the past.

Quoting stoxos
LRA is only an analysis which as many other like it exist only in the mind of the creator.
The name of analysis yes (LR & TPSL), but NO the logic of the market, because trades that are not based on any cause-effect relationships are intuition-based and making such trades it is impossible to achieve stable profitable results in the long term.

-------------

I know that LRA is the only one right method of analysis and all professional traders use it, because this is the real truth (Holy Grail) of the market.
You should understand that LRA is not new method of analysis, but was not previously publicly available. Tom Leksey is the first who have told about it and besides for FREE.
The truth is that only a few will be able to understand the method because it is much easier to use indicators or waves and do not use your brain
Don't be a Lucky-trader! Just make cause-and-effect trades!
Quoting Redeflect
... random behavior... unusual behavior...
Do you have any example for it?
NO MATTER THE SITUATION,NEVER LET YOUR EMOTIONS OVERPOWER YOUR INTELLIGENCE
In my understanding this is controversial because it cannot be in same time planned price/trend and not knowing where price will go in next minute ....year.

Quoting t8936
....Moreover Tom Leksey says, "The market maker always has a planned price trend,.... they do not know where will the price go in a minute, hour, day, week, month, or year, as it is decided here and now and depends on the volume of new open positions and the closing of existing ones." .....
market makers control price and timing to move price. their invested money is much larger than retail trade's money therefore they know where their money goes and why. If their plan A doesnt work they have plan B. I think this is common sense.
NO MATTER THE SITUATION,NEVER LET YOUR EMOTIONS OVERPOWER YOUR INTELLIGENCE
  • Post #78
  • Quote
  • Edited 2:38pm Jan 13, 2018 2:03pm | Edited 2:38pm
Quoting stoxos
{quote} We asked you about a couple things your answers are Tom Leksey said this or said that. Thats not an answer, i know what he said, i read the book. So you are either the same guy aka Mr Tom Leksey.
I've appreciated you call me the author, but I'm just the voluntary volunteer who decides to extend the method.
I know the author only because I learned from him in distant 2009.

And I constantly refer to the author because you are asking what is in the book. What can I do? Sorry for this. Why do you ask me private questions about Tom? You could contact him as I via email

I'm here to help you, but not to prove something.
Don't be a Lucky-trader! Just make cause-and-effect trades!
Quoting t8936
{quote} I've appreciated you call me the author, but I'm just the voluntary volunteer who decides to extend the method. I know the author only because I learned from him in distant 2009. And I constantly refer to the author because you are asking what is in the book. What can I do? Sorry for this. Why do you ask me private questions about Tom? You could contact him as I via email I'm here to help you, but not to prove something.
Your post doesnt answer to any question i made you. I am not asking about things of the ebook.
They questions i made basically, the one question i was asking YOUR opinion not authors. But you keeped referring to him and you never gave your personal opinion.
I didnt called you "author" i said that this account since your are listed in many other places (and banned also in one) is the same everywhere. So you promote this analysis, which means you either are the same guy or work for him.

You say that you are here to help, but actually you dont. No examples just the same reports i can find on the official site. For me its like any other analysis no real evidence, just assumptions.

I am done, i will not post again here, wish you the best on your journey.
Hope you will help some here to reach their target.
Quoting stoxos
{quote} Your post doesnt answer to any question i made you. I am not asking about things of the ebook. They questions i made basically, the one question i was asking YOUR opinion not authors. But you keeped referring to him and you never gave your personal opinion. I didnt called you "author" i said that this account since your are listed in many other places (and banned also in one) is the same everywhere. So you promote this analysis, which means you either are the same guy or work for him. You say that you are here to help, but actually you dont....
I, however, am not here to help. I am here to tell the truth and sow confusion. What he's speaking of is true... and the proof is the market itself. It's the market that's confusing you so in this case I don't need to sow anything.
"The fun is in the hunt. Not the kill."
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