\showframe

\setupbodyfont[12pt]
\setuplayout[height=middle,topspace=1cm,header=0pt]
\setuppagenumbering[alternative=doublesided]
\setupinitial[font=Bold sa 4,n=3]

\starttext

\section{Knuth} \setupinitial[location=text]   \placeinitial \input knuth \par \placeinitial \input knuth \par
\section{Knuth} \setupinitial[location=margin] \placeinitial \input knuth \par \placeinitial \input knuth \par

\page

\section{Knuth} \setupinitial[location=text]   \placeinitial \input knuth \par \placeinitial \input knuth \par
\section{Knuth} \setupinitial[location=margin] \placeinitial \input knuth \par \placeinitial \input knuth \par

\page

\setupindenting[yes,1em]

\section{Knuth} \setupinitial[location=text]   \placeinitial \input knuth \par \placeinitial \input knuth \par
\section{Knuth} \setupinitial[location=margin] \placeinitial \input knuth \par \placeinitial \input knuth \par

\page

\section{Knuth} \setupinitial[location=text]   \placeinitial \input knuth \par \placeinitial \input knuth \par
\section{Knuth} \setupinitial[location=margin] \placeinitial \input knuth \par \placeinitial \input knuth \par

\stoptext

