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Aggressive Initiation

Now that you know how to find sideways price action on the chart lets explore next one that is Aggressive Initiation.

  • Aggressive initiation activity is basically a significant price movement or a trend.
  • It is caused by aggressive buyers pushing the price higher or by aggressive sellers who are pushing the price lower.
  • This sort of aggressive buying or selling often takes place after sideways price action activity.
  • This happens because big institutions are building up their positions (in sideways areas), and when they are done with that, they start aggressive buying or selling to manipulate and to move the price in any direction they want.
  • This is how they make money.
  • They build up their positions slowly and unnoticed, and then they start a trend to make those positions profitable.
  • When the price is moving in a fast trend, there isn’t much time to place any more big positions.
  • For this reason, the institutions need to accumulate their positions before the move.

Look at the below chart by now you might be able to see sideways price action just by seeing any chart.

Aggressive-Initiation-Up1

Below image is marked with Sideways price action

Aggressive-Initiation-Up2

The yellow marking is aggressive initiation area as you can see that in the sideways their position was Short Position as the initiation was downward.

Aggressive-Initiation-Up3

Now lets look at upward initiation. Below is different chart image. Can you spot sideway action ?

Aggressive-Initiation-Dn1

Sideways is shown in the below image.

Aggressive-Initiation-Dn2

As you can see Institution were building Long Position as Aggressive initiation area (yellow rectangle) is upward direction.

Aggressive-Initiation-Dn3

  • Strong initiation areas or trend areas are significant because they show us the intentions of big financial institutions.
  • We can’t see the intentions in sideways price action areas, but when the trend starts,
    • we know if the institutional accumulated positions were long or short.
  • If there is a strong uptrend after a sideways price action area, then
    • we know that the positions that the big institutions were accumulating were long positions.
  • If there is a sideways price action area, followed by aggressive sell-off (or a downtrend), then
    • we know that the accumulated positions were short positions.
  • Remember that strong trend areas or fast price movements are ALWAYS caused by aggressive buyers or sellers.
    • It is the aggression of institutions that moves the price up or down.

Now go to the charts and start looking for Sideways as well as Aggressive initiation. In next article will finally learn Strong rejection of higher or lower prices.

Fuck you all