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these categories will allow you to anticipate upcoming price movement and behavior. That is, understanding whether price is moving due to a responsive reaction on the part of a buyer or seller, versus price movement caused by initiative participation, goes a long way toward understanding how price will react. Your ability to determine which market participants are ilifluencing price will allow you to judge the conviction and behavior oj price movement. A buyer that enters the market when price is below value is considered a responsive buyer. In essence, Novice Joe was a responsive buyer when he waited until the price of lobster dropped to $6.99 per pound before entering the market. Likewise, a responsive seller waits until price is above value before entering the market with sell orders. Responsive buying and selling will typically drive price back toward the mean, sending price toward an area that is considered fair value by the market. Therefore, price movement is short-term oriented and lacks true conviction. An initiative buyer enters the market when price is at or above value. This type of buyer is taking the initiative to push price to a higher area of value. If there was a shortage of lobster in Novice Joe's area and additional lobster would not enter the market for another year, you may see Joe become an initiative buyer. In this case, Joe would aggressively look to buy all the lobster he could find, which would push price to a higher level of value. This type of buying would cause other buyers to enter the market en masse, causing price to explode to new heights. Along the same lines , an initiative seller is enters the market when price is at or below value. This seller is taking the initiative to push price to a lower area of value. Initiative participants have greater conviction behind their behaviors, which has a greater influence on price. These types of moves indicate a more confident buyer or seller, which is then reflected in aggressive price movement. As you learn the concepts behind the book, begin to associate certain price behaviors or setups to initiative or responsive participation. This will allow you to continue to evolve in your understanding of the market and its tendencies.