Initiative Analysis Advanced

Initiative Analysis Indicator

📊 Initiative Analysis (IA) Indicator
Initiative Analysis (IA) is an innovative technical analysis tool based on a unique concept of visualizing and analyzing the real battle between buyers and sellers.

🔍 What is IA and how does it work?
IA identifies initiatives on the chart — directional price moves caused by the actions of buyers or sellers. These initiatives form the three key phases of the market:
• Sideways range (consolidation)
• Trend
• Transitional period

Each initiative has a time limit and a price range. This helps traders clearly see:
• Who currently controls the market;
• What key levels and activity zones are forming;
• Where the price is likely to meet support or resistance.

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📘 Main Features and How to Read the Chart

✅ Identifying Buyer and Seller Initiatives (Dominant Zones)
• A blue background shows a buyer’s initiative — buyers control the market and price is expected to rise (colors can be customized).
• A red background shows a seller’s initiative — sellers control the market and price is expected to fall.

✅ Key Price Levels
• The bottom edge of the blue zone = potential demand/support level.
• The top edge of the red zone = potential supply/resistance level.
• The blue line = potential target level during bullish phases.
• The red line = potential target level during bearish phases.

✅ Levels Inside Initiatives
• The indicator can show up to 5 levels inside each initiative (like Fibonacci levels), which you can set manually in the settings.

✅ Multi-Timeframe Analysis
• Visual elements (initiatives, levels, targets) are shown for two timeframes at once: the current chart timeframe and a higher timeframe of your choice.
• This helps to do full analysis without switching charts.

✅ Key Candles in Initiative Analysis
• KC (Key Candle): the candle with the highest volume within an Initiative.
• tKC (Temporary Key Candle): a temporary high-volume candle that forms after the KC. It may become the new KC if the Initiative extends beyond the previous range.
• IKC (Internal Key Candle): the candle with the highest volume among Initiatives that form inside a sideways range. If KC/tKC and IKC appear in opposite directions within the same Initiative, IKC takes priority.

One possible approach for finding long setups: look for a buyer-side KC, tKC, or IKC within the lower 50% of the Initiative, or a seller-side KC/tKC/IKC on the lower boundary that has been absorbed by buyers. The reverse applies when looking for short setups.

✅ Buyer and seller zones within Initiative:
• Red rectangles represent seller zones. It is preferable to look for sell patterns within the price range of the seller zone when the price returns to that area.
• Blue rectangles represent buyer zones. It is preferable to look for buy patterns within the price range of the buyer zone when the price returns to that area.

✅ Customization
• All colors and elements can be easily adjusted to fit your trading style.

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💡 Why is IA useful for traders?
• Color-coded zones make market context easy to understand: who’s in control, key levels, possible initiative change;
• Saves a lot of time on market analysis;
• Helps find return zones and high-potential entry points;
• Helps forecast potential price targets;
• Makes reading market structure simple and clear.

You can learn more about the Initiative Analysis in the related posts.

A New Approach to Market Analysis: How IA Simplifies Trading

Where to find Trading opportunities?