The Difference Between Initiative and Responsive Trading
Initiative buying vs. responsive buying: what's the difference?
Initiative buyers aggressively purchase contracts to move price higher. Responsive buyers, on the other hand, step in when they believe prices have moved into an area where buying makes sense.
Imagine ES falls below the previous session's value area.
If aggressive sellers continue pushing price lower, the market may be accepting lower prices.
But if selling slows and buyers push price back into the previous value area, responsive buying may be taking place.
Neither behavior guarantees a reversal or continuation.
I want to understand who is driving the move and whether the market accepts the new prices.
That distinction can help me interpret market behavior instead of blindly buying support or selling resistance.