Initiative Analysis 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.

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 black 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.

✅ Decision Candles in Initiative Analysis

• KC - the candle with the highest volume within an initiative that led to a breakout beyond the previous initiative or range. This candle shows where major players were most active within the initiative.
• tKC - a temporary high-volume candle that appears after the initiative breaks the previous range. If the new initiative extends beyond the previous one, tKC may become the new KC. tKC also shows who exerts more effort during a correction and what result they get — for example, via the candle body (spread).
• IKC - the candle with the highest volume among Initiatives that form inside a sideways range.

If an initiative contains KC, tKC and IKC pointing in different directions, priority goes to the candle formed in the contextual zone (See contextual zones article - Where to find Trading opportunities). If none exists, the last-formed candle takes priority.
How to use Decision Candles - Read more about Decision Candles

✅ 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.

💡 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.

Read more about Indicator IA Advanced