Locked-in Range Analysis Trading Strategies
2018-05-20

 

Trading strategies aren’t a guarantee for success, but when properly researched and executed, a trading strategy can provide a positive mathematical expectation for the trading result.

There are many different types of trading strategies for professional traders to consider, but their basis is always causes and effects.

CME Futures and Forex cause-effect basis is an imbalance of current open positions. Locked-in Range Analysis seeks to determine the direction of the prevailing volume of open positions, the imbalance of which will enlighten you to future market behavior.

Last LR's Sentiment Strategy

By determining the last LR's sentiment, we guess that such a sentiment will be preserved and always search an opportunity to enter the market by the direction against the sentiment of the LR's.

Locked-in Range Cancellation Strategy

By understanding it is not profitable for a market maker to return the price into LR so that loss-making positions cannot close at break-even levels, the LR's cancellations means that either LR does not have enough imbalance or the current market sentiment has changed to the opposite and we have an opportunity to enter the market by the direction of the LR's breakout.

Locked-in Range Rebound Strategy

By understanding it is not profitable for a market maker to return the price into LR so that loss-making positions cannot close at break-even levels, we have an opportunity to enter the market by the time of the approximation to the Locked-in Range.

Within TPSL Levels Strategy

By understanding a market maker accumulates position within TPSL 1 Levels and it is not profitable for a market maker to quote a price above TPSL 1 High or below TPSL 1 Low until the accumulation has high imbalance of open positions, we have an opportunity to enter the market within TPSL 1 Levels +- 20% of the price range in the case of the renew High-Low prices which is called flat extension.

High-Low Renews Strategy

The type of "Within TPSL Levels Strategy" when we sell new Highs or buy new Lows guessing the last LR does not have enough imbalance of prevailing open positions that for a market maker not will be profitable to quote the price out the range.

Tom's Note

New LRA Reports 22-10-2018 are available.

Pre-Second Edition of my LRA book is available to download!

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