Initiative Analysis (IA) Indicator — Pro Version

Overview

Initiative Analysis (IA) is a technical indicator that identifies which side of the market is currently expected to dominate (buyers or sellers), calculates the corresponding target level, and forecasts possible initiative shifts.
The indicator highlights initiatives — directional price moves formed by active buyers or sellers. Each initiative has two key attributes:

• Initiative forecast: who is likely to take control (buyers or sellers).
• Target forecast: the projected price level if the initiative continues.

👉 Example: if a buyer initiative is forecast, IA plots the buyer’s target above the market. If a seller initiative is forecast, the seller’s target is displayed below.
This logic allows traders to clearly see:

• Who is expected to control the market;
• Which levels may act as support or resistance;
• Where price may potentially move next.

Chart Elements

Buyer and Seller Initiatives

• Green background → Buyer initiative (target plotted above).
• Red background → Seller initiative (target plotted below).

(Colors are customizable in the settings.)
Key Price Levels

• Bottom edge of the green zone = potential demand/support.
• Top edge of the red zone = potential supply/resistance.
• Green line = buyer’s forecast target.
• Red line = seller’s forecast target.

Key Candles

• KC: the highest-volume candle inside an initiative that develops into a trend.
• IC : the highest-volume candle inside an initiative within a sideways range.

Interpretation:

• If the last Key Candle is KC → the market is trending.
• If the last Key Candle is IC → a sideways range is forming.
• If initiative and Key Candle are on the same side (e.g., buyer initiative + buyer KC/IC with strong spread), this increases the probability of continuation.

Buyer and Seller Zones
The indicator highlights areas where the active side may attempt to resume price movement.

• Buyer’s zone = green rectangle.
• Seller’s zone = red rectangle.

A zone is formed by a sequence of consecutive candlesticks grouped on the chart.
These zones are useful for identifying potential entry areas in the direction of the initiative, while the opposite zone may serve as resistance to price movement.

False Breakout Pattern Signals

• Automatic detection of manipulations at the boundaries of sideways ranges and initiative edges.
• When such a pattern appears, the indicator places a label on the chart: Buy (for bullish signal) or Sell (for bearish signal).
• Alerts can also be triggered for these signals, allowing traders to react in real time, especially if confirmed by higher timeframe context.

Multi-Timeframe Analysis

• Initiatives, targets, and levels can be shown simultaneously for both the current chart timeframe and a higher timeframe.
• This allows traders to align short-term trades with the broader market structure without switching charts.

Real-Time Alerts

• Alerts are triggered when a false breakout pattern.
• Multi-timeframe alerts are supported: signals can be received not only from the current chart but also from up to three additional timeframes set in the inputs.

Usage Guidelines

IA is not a 100% ready-to-trade signal. It provides a forecast of direction and target, as well as false breakout patterns, but the trader must confirm the strength of the active side on both the chart timeframe and the higher timeframe using their own methods. Examples include: volume analysis (buyer and seller zones, high-volume candles), market structure (initiative edge, which side holds initiative), oscillators, etc.

Quickstart Checklist

1. Set up and receive alerts: configure alerts in TradingView. When an alert is triggered, check the label on the chart (Buy or Sell).
2. Check higher timeframe context for alignment.
3. Validate strength with wide-spread high-volume bars, absorptions, or defense of initiative edges.
4. Define your entry point using your own system (retest of a level, candlestick pattern, oscillator, etc.) or on the update of the extreme of the candle marked by the label (break of the high for Buy or break of the low for Sell).
5. Manage risk: place your stop behind the false breakout extreme; take first profit at the IA target or at 50% of the initiative range; manage the rest according to structure (e.g., initiative edge).

Practical Scenarios

Trade Execution

• Buyer bias: Buyer initiative + strong buyer candle → consider long entries below 50% of the buyer block.
• Seller bias: Seller initiative + strong seller candle → consider short entries above 50% of the seller block.
• Defense of initiative edge: Strong response at initiative edge increases odds of continuation.
• KC/IC filter: Trend KC or range IC in line with initiative + strong spread = higher probability.
• Skip trades: Transitional phase with overlapping zones or no clear strength.

Using Alerts and Labels

• Buy alert: When a Buy alert and label appear, check higher timeframe and strength confirmation. If aligned, treat it as a potential setup in favor of buyers.
• Sell alert: When a Sell alert and label appear, confirm context with higher timeframe and strength factors. If aligned, treat it as a potential setup in favor of sellers.

Analysis and Selection

• Multi-timeframe overview: Quickly assess the market phase (trend, range, or transitional) and the current position of price within an initiative across different timeframes (e.g., 1H, 4H, Daily, Weekly) without manual bar-by-bar review.
• Asset scanning: Review multiple instruments efficiently and focus on the most promising ones. Example: if you see a buyer initiative with strong buyer Key Candles on several assets, you can filter for long opportunities in those instruments.
• Historical testing: Replay past price action to see how often IA forecasts worked, building confidence before applying live.

Developer-Friendly
IA Pro also provides output data — initiative boundaries and targets — that you can use as input parameters for your own custom strategies or indicators.

👉Read more about Indicator IA Free

IA Free vs IA Pro

👉 Pricing Plans