Locked-in Range Analysis (LRA)

OK. so how volume should be interpreted or related in shaded areas on your chart?

Good. Let's understand the LRA from the beginning.

I've attached the screenshot with the ideal Crude Oil Locked-in Range. Let's imagine that you Buy or Sell within this range having medium-term goals.
Your task: Draw the lines at which price you will have your Stop-Losses (one line of Buy SL and 2 line of Sell SL).

Best Locked-in Ranges of the Month (December 2017)

Euro FX (EUR/USD) Futures
Reason for opening Buy position:
An approximation of price to the support Locked-in Range

Japanese Yen (JPY/USD) Futures
Reason for opening Sell position:
An approximation of price to the resistance Locked-in Range

E-mini NASDAQ 100 Futures
Reason for opening Sell positions:
An approximation of price to the resistance Locked-in Range

Reason for opening Buy position:
An approximation of price to the support Locked-in Range

E-mini Dow ($5) Futures
Reason for opening Buy position:
An approximation of price to the support Locked-in Range

Crude Oil Futures
Reason for opening Buy position:
An approximation of price to the support Locked-in Range

in all the cases, we can say your signals are accurate from LRA analysis ...

That is because I use Daily LRA Reports by Tom Leksey at LRAtrading.com

Best Locked-in Ranges of the Month (January 2018)

Japanese Yen (JPY/USD) Futures
Reason for opening Buy position:
An approximation of price to the support Locked-in Range

Attached Image (click to enlarge)

Best Locked-in Ranges of the Month (January 2018)

British Pound (GBP/USD) Futures
Reason for opening Buy position:
An approximation of price to the support Locked-in Range

Attached Image (click to enlarge)

Best Locked-in Ranges of the Month (January 2018)

Australian Dollar (AUD/USD) Futures
Reason for opening Buy position:
An approximation of price to the support Locked-in Range

Attached Image (click to enlarge)

Best Locked-in Ranges of the Month (January 2018)

Canadian Dollar (CAD/USD) Futures
Reason for opening Buy position:
An approximation of price to the support Locked-in Range

Attached Image (click to enlarge)

Best Locked-in Ranges of the Month (January 2018)

Swiss Franc (CHF/USD) Futures
Reason for opening Buy position:
An approximation of price to the support Locked-in Range

Attached Image (click to enlarge)

Best Locked-in Ranges of the Month (January 2018)

New Zealand Dollar (NZD/USD) Futures
Reason for opening Buy positions:
An approximation of price to the support Locked-in Range

Attached Image (click to enlarge)

How to Determine and Use Locked-in Ranges. Step by Step

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.

STEP 1. Determining the prices and time of a LR
Finding the high traded volume range within TPSL 1 Levels which means a high possibility of accumulated open positions with not intraday interest.

STEP 2. Waiting for a TPSL 1 Level Breakout
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.

STEP 3. Determining the direction and degree of open positions’ imbalance of a LR
LRA Basis: It is not profitable for a market maker to return the price into the LR with high volume of unidirectional open positions, so that loss-making positions cannot close at break-even levels.
Without knowing the direction and volume of open positions within a LR and the direction and volume of closed positions after the breakout of TPSL level, it is only possible to focus on the average scenario of volume’s appearance and the time spent out of the LR.


Figure. Average scenario for determining the volume’s appearance

STEP 4. Confirming or Changing the direction and degree of open positions’ imbalance
Confirming of LR is a price out-range quotation for the next trading day (after TPSL 1 Level Breakout) without the price's return to the LR.
We can assume a False Breakout only with Low Degree of Volume's Appearance and price out-range quotation must be shorter in time than in the considered range. In cases of Medium and High Volume Appearance, a price return means an insufficient imbalance of open positions of the range and that is LR cancellation.

Best Locked-in Ranges of the Month (February 2018)

Euro FX (EUR/USD) Futures
Reason for opening Sell positions:
An approximation of price to the resistance Locked-in Range

Reason for opening Buy positions:
An approximation of price to the support Locked-in Range

How to Determine and Use Locked-in Ranges. Step by Step

Example 1. LR Determination
If the price is above support LR we are looking for opportunities to open Long positions.
If the price is below resistance LR we are looking for opportunities to open Short positions.



Example 2. False Breakout
If the price is above support LR we are looking for opportunities to open Long positions.
If the price is below resistance LR we are looking for opportunities to open Short positions.



Example 3. LR Cancellation
When support LR is cancelled we are looking for opportunities to open Short positions.
When resistance LR is cancelled we are looking for opportunities to open Long positions.

Just trying...

Its today 6E

Good work, but you are wrong to determine this LR. It was not. We can determine LRs only by the price behavior after a TPSL 1 breakout.

But you are right to determine TPSL 1 Level and the fact the price is not being there for long says us that the accumulation is not stopped.
You need to wait one trading session upper TPSL 1 to LR approvement
But in any case 6E would not have an Locked-in Range because:

Will LRA work on cryptocurrency market?