Where to find Trading opportunities?
The Initiative Analysis (IA) concept was created to be as visual and easy to understand as possible. Thanks to this, you can quickly spot areas on the chart where it makes sense to look for trades.
Let’s look at a situation where the price increased after a buyer trend. A quick reminder: a trend means at least two initiatives going in the same direction. So where should you look for buying zones after such a move?
The Initiative Analysis (IA) concept was created to be as visual and easy to understand as possible. Thanks to this, you can quickly spot areas on the chart where it makes sense to look for trades.
Let’s look at a situation where the price increased after a buyer trend. A quick reminder: a trend means at least two initiatives going in the same direction. So where should you look for buying zones after such a move?
Usually, at the beginning of a trend, there is a seller initiative. Inside that initiative, there are 4 zones where it makes sense to look for a buy pattern if the price returns:
🔸 the upper and lower boundaries of the seller initiative;
🔸 an extreme point inside the initiative, if there is one;
🔸 the seller’s target level that has not been reached yet (unmet seller target).
🔸 the upper and lower boundaries of the seller initiative;
🔸 an extreme point inside the initiative, if there is one;
🔸 the seller’s target level that has not been reached yet (unmet seller target).
Not all buyer initiatives in a trend are equally important. Some are especially strong — in those initiatives, the price barely pulls back (less than 50% of the move). These are called dominant initiatives.
If the price later returns to the point where the pullback ended, that’s a good place to look for a buy setup.
If the price later returns to the point where the pullback ended, that’s a good place to look for a buy setup.
With sell trades, everything works the same way but in reverse. Look at the buyer initiative at the start of the seller trend and also at the strong (dominant) initiatives of the seller.
Now let’s look at some examples.
These charts show that such patterns appear on different assets and timeframes
Now let’s look at some examples.
These charts show that such patterns appear on different assets and timeframes
📌 BTCUSDT
(November 2024)
The 1st initiatives led to strong buying continuation:
(November 2024)
The 1st initiatives led to strong buying continuation:
📌 BTCUSDT
(November 2024)
The 3st initiatives led to strong buying continuation:
(November 2024)
The 3st initiatives led to strong buying continuation:
📌 US Dollar Index
The chart shows 2 seller initiatives forming a trend.
The seller continued the move from the buyer’s target level, which had not been reached before:
The chart shows 2 seller initiatives forming a trend.
The seller continued the move from the buyer’s target level, which had not been reached before:
📌 Natural Gas
The buyer bounced from the upper boundary of the seller initiative
The buyer bounced from the upper boundary of the seller initiative
📌 Natural Gas
The seller resumed from the lower boundary of the buyer initiative
The seller resumed from the lower boundary of the buyer initiative
📌 Gold
The chart shows 2 examples of buyer resumed:
The chart shows 2 examples of buyer resumed:
- from the upper boundary of the seller initiative on the 1-hour timeframe;
- from a dominant buyer initiative on the daily timeframe, whose contextual level is located near the lower boundary of the seller initiative on the 1-hour chart.
