A New Approach to Market Analysis: How IA Simplifies Trading
Approaches to Market Analysis and the Challenges Traders Face
When we first start trading and investing, we encounter various methods for predicting price movements. Over time—and with enough persistence, patience, and experience—we find the approach that helps us make profitable trades. Among the most popular are oscillators and channel indicators, Dow Theory, Elliott Waves, Fibonacci levels, supply and demand, Volume Spread Analysis (VSA), Market Auction Theory, and concepts like Inner Circle Trader/Smart Money Concept (ICT/SMC).
Many traders combine elements from different methods to build a strategy that works best for them. However, the road to consistent profits is rarely easy—most face similar challenges.
Lack of Knowledge and Experience
Approaches to Market Analysis and the Challenges Traders Face
When we first start trading and investing, we encounter various methods for predicting price movements. Over time—and with enough persistence, patience, and experience—we find the approach that helps us make profitable trades. Among the most popular are oscillators and channel indicators, Dow Theory, Elliott Waves, Fibonacci levels, supply and demand, Volume Spread Analysis (VSA), Market Auction Theory, and concepts like Inner Circle Trader/Smart Money Concept (ICT/SMC).
Many traders combine elements from different methods to build a strategy that works best for them. However, the road to consistent profits is rarely easy—most face similar challenges.
Lack of Knowledge and Experience
- Complexity of Technical Analysis: Too many tools, conflicting signals on different timeframes, and unclear logic can be overwhelming.
- No Clear Trading Plan: Many traders rely on intuition or others' advice instead of having a structured strategy.
- Poor Risk Management: Ignoring capital and risk controls leads to losses.
- Emotional Decision-Making: Fear and greed get in the way of sound decisions.
- Trading Takes Time: Analyzing charts, scanning assets, and finding entry points all require time and focus.
- ·Slow Learning Curve: Gaining consistent results takes years of practice and study.
A New Perspective: The Concept of Initiative Analysis (IA)
Today I’d like to present Initiative Analysis —a concept that:
Imagine looking at your chart and instead of seeing just candles, you see blocks of directional movement—called initiatives.
An initiative is the action of buyers or sellers that causes price movement. It is limited by both price range and time, which helps clearly identify who dominates the market at any given moment.
How IA Differs from Traditional Analysis
To understand how IA stands out, think about the classic tools traders use:
This new method offers a fresh lens for viewing market dynamics. Instead of dividing charts by time or volume, candles are grouped by initiative blocks, each with its own duration. Comparing these blocks helps you "read" the market—who is gaining strength and who is losing it.
Even more importantly, this approach can help predict shifts in market control and estimate potential price targets.
Look at these charts
Today I’d like to present Initiative Analysis —a concept that:
- Simplifies how you understand technical analysis
- Speeds up learning through a structured approach
- Reduces time spent on daily analysis
- Provides elements of a working trading strategy
Imagine looking at your chart and instead of seeing just candles, you see blocks of directional movement—called initiatives.
An initiative is the action of buyers or sellers that causes price movement. It is limited by both price range and time, which helps clearly identify who dominates the market at any given moment.
- If buyers dominate, price rises. These phases are shown with blue zones.
- If sellers dominate, price falls. These are shown with red zones.
How IA Differs from Traditional Analysis
To understand how IA stands out, think about the classic tools traders use:
- Candle patterns (e.g., hammer, doji, engulfing)
- Chart figures (e.g., head and shoulders, double top, flag)
- Indicators (e.g., oscillators, moving averages, channels)
- Elliott Waves, Market Profile, Order Flow
- Smart Money Concepts (ICT/SMC)
This new method offers a fresh lens for viewing market dynamics. Instead of dividing charts by time or volume, candles are grouped by initiative blocks, each with its own duration. Comparing these blocks helps you "read" the market—who is gaining strength and who is losing it.
Even more importantly, this approach can help predict shifts in market control and estimate potential price targets.
Look at these charts
📉 Trend
When one side controls the market strongly, we see a single background color in price ranges. In this case, it makes sense to look for trades in the direction of the move. But it’s important to check the higher timeframe for confirmation (!).
In the chart:
When one side controls the market strongly, we see a single background color in price ranges. In this case, it makes sense to look for trades in the direction of the move. But it’s important to check the higher timeframe for confirmation (!).
In the chart:
- A blue target line means a bullish target (thin line = 1H, thick = 1D).
- A black target line means a bearish target (same logic for thickness).
- Targets are calculated using a custom method that includes the initiative range, candle structure inside the initiative, and traded volumes.
- Once a candle crosses the target line, the target is considered reached.
- If a new target appears, it will be shown.
- If the price leaves the buyer zone, the blue target disappears until the price returns. Same rule for seller zones.
📉 Sideways Market (Range)
If the chart background changes between red and blue in one price range, it means the market is in consolidation (sideways) — temporary balance between buyers and sellers. In this case, targets also switch: blue = buy target, red = sell target.
If the chart background changes between red and blue in one price range, it means the market is in consolidation (sideways) — temporary balance between buyers and sellers. In this case, targets also switch: blue = buy target, red = sell target.
🔀 Transitional Phase
Sometimes, two price zones may appear at the same time — one above (buyers), one below (sellers). This is a transition period. It may turn into a sideways range or develop into a trend.
During transitions:
Sometimes, two price zones may appear at the same time — one above (buyers), one below (sellers). This is a transition period. It may turn into a sideways range or develop into a trend.
During transitions:
- It’s better to avoid trading.
- Check who controlled the price before, and who is in control on the higher timeframe (this is always important).
- For example, if sellers were in control before, and the higher timeframe confirms it, sellers are likely to stay dominant. However, a short-term bounce or trend reversal is possible.
With IA You Can:
How IA Helps Solve Key Trading Challenges
Complex Analysis → Simplified visual zones make market context easy to read—even for beginners.
Lack of Strategy → IA covers 3 of the 5 essential trading questions (direction, entry zone, and target), and can be combined with other tools or techniques to answer the remaining two: entry timing and stop-loss placement:
Time Management → Visual structure saves hours of scanning and comparing charts.
"Now I scan for trade setups in 15 minutes, just by checking the visual layout. Before, I’d spend hours deciding if an asset was trending or in a range." — trader review.
Learning Speed → Think of it like driving: learning on a modern automatic car is much easier than on a 50-year-old manual. You don’t need to know how the transmission works—just how to drive.
Same with IA. It’s not an autopilot, but a powerful navigator that helps you orient in the market. IA simplifies analysis, but the trader is still responsible for decisions, risk, and mindset.
Fewer tools = faster learning. You don’t need to know how indicators are built—just how to use them.
IA focuses your attention on what matters. It reduces noise and highlights structure.
Final Thoughts
IA introduces a new way of analyzing markets—not just reading the result, but watching the fight unfold in real time. It helps traders make more confident decisions, simplifies analysis, and adds structure to the chaos of the market.
If this approach speaks to you—share the article, leave a comment, and stay tuned for more insights in upcoming posts!
- Identify buyer/seller initiative in real time
- Anticipate initiative shifts
- Visualize control zones and key levels
- Compare strength between buyers and sellers
- Forecast potential price targets
How IA Helps Solve Key Trading Challenges
Complex Analysis → Simplified visual zones make market context easy to read—even for beginners.
Lack of Strategy → IA covers 3 of the 5 essential trading questions (direction, entry zone, and target), and can be combined with other tools or techniques to answer the remaining two: entry timing and stop-loss placement:
- Trade direction: Buy in a buyer block, sell in a seller block.
- Entry zone: Buy below 50% of a buyer block, sell above 50% of a seller block.
- Profit-taking: Estimate target using visualized zones.
Time Management → Visual structure saves hours of scanning and comparing charts.
"Now I scan for trade setups in 15 minutes, just by checking the visual layout. Before, I’d spend hours deciding if an asset was trending or in a range." — trader review.
Learning Speed → Think of it like driving: learning on a modern automatic car is much easier than on a 50-year-old manual. You don’t need to know how the transmission works—just how to drive.
Same with IA. It’s not an autopilot, but a powerful navigator that helps you orient in the market. IA simplifies analysis, but the trader is still responsible for decisions, risk, and mindset.
Fewer tools = faster learning. You don’t need to know how indicators are built—just how to use them.
IA focuses your attention on what matters. It reduces noise and highlights structure.
Final Thoughts
IA introduces a new way of analyzing markets—not just reading the result, but watching the fight unfold in real time. It helps traders make more confident decisions, simplifies analysis, and adds structure to the chaos of the market.
If this approach speaks to you—share the article, leave a comment, and stay tuned for more insights in upcoming posts!
