\setupbodyfont
  [pagella]

\setupalign
  [tolerant,stretch]

\setupfirstline
  [alternative=line,
   color=darkred,
   style=\setfontfeature{smallcaps}]

\setupfirstline
  [fancy]
  [n=3]

\setupfirstline
  [fancier]
  [alternative=word,
   color=darkblue,
   style=bold,
   n=3]

\setupfirstline
  [weirder]
  [alternative=line,
   color=darkgreen,
   style=\setfontfeature{smallcaps},
   n=3]

\setupinitial
  [location=text,
   n=2,
   color=darkred,
   voffset=1.2\lineheight,
   before={\blank[2*big]}]

% \enabletrackers[typesetters.firstlines,typesetters.initials]

\starttext

    \setfirstline

    \input ward \par

    \placeinitial

    \input ward \par

    \setupindenting[medium,yes]

    \setinitial % \placeinitial

    \input ward \par

    \setinitial %  \placeinitial
    \setfirstline

    \input ward \par

    \setfirstline[fancy]

    \input ward \par

    \setfirstline[fancier]

    \input ward \par

    \setinitial %  \placeinitial
    \setfirstline[weirder]

    \input ward \par

\stoptext
