Thread: ed-in Range Analysis (LRA)

ed-in Range Analysis (abbr. LRA) is the futures market analysis method, described in the ebook ed-in Range Analysis: Why most traders should lose money in the futures market (Forex) by Tom Leksey, which reduces a doubt in the futures market.

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

LRA is a cause-and-effect analysis egy arising from the foundation of this market, so, by applying LRA, you will either become one of those professional market participants obtaining a non-random and repeatable result or you will consciously leave trading for good.

LRA ebook may be published, reproduced or distributed for Free - http://lratrading.com/file/get-uploa...LRA_ENfileid=5

LRA gives you answers for queries:Why Can Price Change Occur? Why Do Instruments Correlate? Value of Currency Session and Time-Frame Impact of Fundamental Factors on Price What is ed-in Range?

ed-in Range (abbr. LR) is the trading range where 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, since the price will no more allow to close in profits or break-even.



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



Support LR is the locked-in range where the volume of available sell places jelqing, and it is profitable for the market maker to quote prices above the range.



The logic behind price changes in the futures markets, where liquidity is supplied by market manufacturers




Open positions, their take-profits and stop-losses are the only accurate source of information for making decisions on speculative entry to the futures market with the market maker, therefore, those who don't base their trading decisions on it are Lucky-traders.

Example of LRA trades:

New Zealand Dollar (NZD/USD) Futures

Rationale for opening Buy Rankings:
An approximation of price to the support ed-in Range

Hello and good start with your new hazard.

TPSL1 and others are some prices which people have the profit/loss, at the book those prices is where in places such as last swing or high /low, since most of people use technical analysis and price action. But since TPSL1 is vital for my comprehension in order to start a position but there's a problem different time frames especially lower intradays are going to have much more swings high lows. So in my analysis can I think about those as my TPSL.

Organizing a TPSL1 for M5 interval is 8 pips away, from the flip side a TPSL1 of H1 interval is 20 pips away. Which of these I should accept as my TPSL1?

Thank you

Originally Posted by ;

Hello and decent start with your new threat. TPSL1 and the others are a few prices which people have the profit/loss, at the publiion those prices is where in places such as last swing or high /low, since most of people use technical analysis and price action. But since TPSL1 is vital for my understanding in order to start a place but there's a problem different time frames notably lower intradays are going to have more swings large lows. So in my analysis can I consider those as my TPSL. Instance a TPSL1 for M5 interval is 8 pips away, from another...

The LRA time-frame selected for the building of charts should incorporate the current TPSL levels along with the former trading days at precisely the same time, using a likely significant volume of locked/break-even open positions that influence the formation of prices by the market maker (Example: 1 Hour).

Thus when we talk about LRA We Must use just 1 Hour time-frame and greater but 5 min never

Interesting things...

how can you determine if there are far more BUYERS than SELLERS or more SELLERS than BUYERS stuck in the ed-in range?

Originally Posted by ;

Interesting things... how can you decide if there are more BUYERS than SELLERS or more SELLERS than BUYERS stuck in the ed-in range?

In my understading
you cant in range, but you notice when price breaks TPSL 1 if the quantity is low then no new positions opened so it is going to go the opposite direction. If quantity in TPSL 1 is large it will continue to that direction as new positions have opened.

Originally Posted by ;

quote In my understading you cant in range, but you see that when price breaks TPSL 1 when the quantity is low then no more new positions opened so it is going to go the opposite direction. If quantity in TPSL 1 is large it will continue to this direction as new positions have opened.

You really cant determine in range, and you really need to wait patiently if price breaks TPSL 1, but we interest in not the amount of new open positions but at the amount of LR's stop-losses.

Originally Posted by ;

Interesting things... how can you decide if there are more BUYERS than SELLERS or more SELLERS than BUYERS stuck in the ed-in range?

An increase in open interest throughout the movement of a price within the same trading range contributes to a rise in the capacity for the subsequent movement of prices after the range breakout: at a solid imbalance #8211; a breakout and movement in the direction contrary to the prevailing open positions; at a slight imbalance / no imbalance #8211; a breakout in one direction and then in another course, for triggering stop-loss on each side of the range (range expansion ).

There is no point in trying to predict the prevailing open positions from the locked-in range; it is necessary to assess the price and quantity changes after the range breakout and also in closeness to the TPSL amounts, which will allow to combine the further profitable price fluctuations for the market maker.

Originally Posted by ;

quote An increase in open interest throughout the motion of a price in precisely the same trading range leads to a rise in the capacity for the following movement of prices following the range breakout: at a strong imbalance -- a breakout and motion in the direction contrary to the prevailing open positions; at a small imbalance / no imbalance -- a breakout in one direction and then in a different course, for triggering stop-loss on each side of the range (range expansion ). There is not any sense in attempting to predict the prevailing open positions from the...

there's not any sense in attempting to predict that the prevailing open positions from the locked-in range
Why?
And why forecast? There is not any need to predict IMO. Once the range is determined (albeit arbitrarily) subsequently the OI can be calculated along with the imbalance can be measured.
If you hope to analyze the price and quantity changes following the range breakout and in closeness to the TPSL amounts... then it is too late

Originally Posted by ;

quote There is no sense in trying to predict that the prevailing open positions from the locked-in range Why? And why forecast?

Perhaps you have studied the method prior to making similar conclusions?
LRA technique is completely described in the book called ed-in Range Analysis: Why most traders must drop money in the futures market (Forex) by Tom Leksey.

Capabilities of Market Makers

to comprehend the capacities of market manufacturers, an individual should understand the restricted market depth readily available to any player: 1) Information featuring the nearest (best) placed 10 bid and 10 ask limit orders reveals the price and number of contracts (Level 2). 2) Data featuring each trade made reveals the price, time, and number of contracts (Time Sales).

CME Group market manufacturers use the full market depth readily available to the exchange, specifically:
1) Data featuring all existing set limited orders.
2) Data featuring all existing set stop orders.
3) Data featuring all open positions: price, volume, and side of order (buy/sell).



Market makers collectively produce a market for each futurescontract, centrally managing its common pool of places to prevent conflicts of interest that would arise when working separately, when rather than earning the spread and self-quoting, market manufacturers would find a massive volume of positions that wouldn't have a counterparty to shut prior to the expiration of their futures. (Example: Speculator buys 1 money settlement contract on the market, along with his counterparty is Market Maker #1; then, the same speculator decides to depart the position and sell his contract; this time, his counterparty is Market Maker #2. Because of this, the speculator does not have a position, along with the market manufacturers have 2 open positions that they can close just with each other; in this case, one of these will suffer declines.)

According to the latest information, just market manufacturers know the current open positions (volume, side of order) and we can simply predict but that is sufficient to earn money from the market using ed-in Ranges, Amount of imbalance, TPSL Amounts

Originally Posted by ;

quote then it is too late

No. You aren't perfect. Following the range breakout the locked-in range still has open positions and it isn't profitable for a market maker to reunite the price into LR, so that loss-making positions cannot shut at pre-determined levels.