📘 User Guide: “Thomas Wade Price Action” Strategy

Hello Thomas, this is Roberto Perez again. I'd like to give you an overview of the visual components of the main tool. In this video, I will walk you through all the visual elements displayed on your chart and explain what each of them represents. These elements are essential to understanding how the strategy works and making informed trading decisions based on price action principles.

One of the core functions of the strategy is identifying market structure through leg formations. The system automatically detects when a leg one and a leg two have formed. It also highlights when a second entry long or a second entry short is present.

In addition, it displays lower highs, higher lows, and even failed second entry setups. These are visualized on the chart using labeled markers and colored dots.

The dots indicate the exact price levels where an order would be placed once a second entry setup is triggered. For example, once a first entry is established, any of the highlighted dots that get pierced by price would qualify as a valid second entry. If the setup fails to produce a valid move, it will be labeled as a failed second entry, clearly shown on the chart.

The tool also includes a built-in strategy control panel that allows you to customize how signals are displayed. You can toggle various filters and features on or off. For instance, I currently have the counter-trend filter disabled, but you can enable it at any time depending on your trading preferences.

You can use several advanced filters that help refine trade selection. For example, the strategy includes a filter that detects whether a bar is a doji or a shooting star. Depending on your configuration, the system can include or exclude these bars when evaluating entry opportunities.

Another important filter is the EMA separation filter. This ensures that entries only occur when the price is near a key reference point—typically the EMA. You can define the required proximity, such as within 3 or 4 ticks from the EMA, and the system will only show valid entry setups that meet that condition.

You can also toggle the display of specific elements. For instance, you can enable or disable the second entry markers, and choose whether to show the “0” reference points—by default, only “1” and “2” are shown. If desired, all zeros can be displayed, but enabling them may clutter the chart.

Additionally, you can draw swing high and low markers, and activate or deactivate the 1-2 entry markers. These markers are key components of the setup, and their visibility can be tailored to your preference.

You can also choose whether the system should show signals only on the correct side of the EMA. For example, if counter-trend entries are disabled, then the system will avoid showing “1-2” patterns on the wrong side of the EMA.

Another filter evaluates the color of the bar. For instance, if a bar is green (bullish), the system may disqualify it as a valid short entry. This helps enforce consistency with your trading logic. The system makes this clear—valid entries appear as bright dots and labels, while disqualified entries appear dimmed or gray.

The chart will always show the location of the “0” point in the structure, although it won't backfill previous zeros. When evaluating trade quality, look at the brightness of the visual markers. Bright markers indicate qualified setups, while dim ones reflect filtered or unqualified conditions.

For example, a second entry short that appears in gray—with a gray arrow and dim dot—means it’s not a valid trade according to your filters. On the other hand, if it appears bright and aligns with the EMA and other criteria, it's a valid opportunity.

Sometimes, a dot may still appear but is dimmed because the bar was disqualified—for example, due to being green on a short setup. In contrast, a red bearish bar may validate a short entry, even if the trade would ultimately have failed. In such cases, the user must assess risk; the stop would typically be placed above the signal bar, and it might have been hit.

You can also enable visual filters for dojis and shooting stars. When these are activated, you’ll need to reload the NinjaScript to apply changes. The chart then highlights dojis and shooting stars with specific colors.

These candle patterns serve as additional filters that can either allow or block second entry signals. When enabled, they enhance visual clarity by showing which bars are subject to filtering based on their formation type.

You can choose to enable the display of all the “0” markers in the price structure. However, showing every zero can clutter the chart unnecessarily. For that reason, I usually leave them disabled and only focus on the “1” and “2” entries.

Another key feature of this tool is its use of audible alerts. When a second entry setup is detected, the system plays a voice alert such as “Potential second entry short”. It also announces the specific instrument name, for example, “Potential ES second entry short”. This is especially helpful if you're monitoring multiple charts simultaneously.

When the second entry becomes fully qualified, the system plays another alert saying “Second entry short” and marks it visually on the chart. Keep in mind, this tool does not place trades—it only highlights where trades would have occurred based on your rules.

In the Properties window, there are additional filters available that are not shown in the on-chart strategy control panel. One of these is the Doji filter, which you can enable or disable. You can also define the percentage of a candle’s body required for it to qualify as a doji. For instance, you might decide that any bar with a body greater than 30% is not a doji. The system supports this by offering a flexible threshold to classify candles with larger bodies as dojis if desired.

The same concept applies to shooting stars, which are candles with small bodies and long wicks, either above or below. You can define how large or small the body must be for a candle to qualify as a shooting star based on your trading logic.

There are also optional visual markers available. While I don’t usually use them, you can enable small triangles that point directly to the bars identified as dojis or shooting stars. For example, upward or downward-pointing arrows will appear above or below those bars when this option is activated.

Although these visual aids are not essential, they can offer additional clarity when reviewing the chart or backtesting the logic. Let’s now continue to the next set of parameters.

All calculations within the tool are based on the concept of swing strength, which is typically set to a default value of 1. You can choose to draw high and low swing markers on the chart, or limit it to only show higher lows and lower highs, depending on your preference.

There are several display options you can configure. For example, you can toggle the visibility of long and short entries, choose whether or not to display the swing indicators along with their corresponding prices, and decide if you want to show entry levels labeled “1”, “2”, and “0” on the final bars of each setup.

One important setting controls whether the strategy should only display the 0-1-2 sequences on the correct side of the EMA. For instance, if you're only looking for short trades while price is below the EMA, the system will only display short setups under those conditions. Similarly, long entries will only appear above the EMA.

This filter is especially helpful in avoiding counter-trend trades. While the system is capable of identifying second entry opportunities both above and below the EMA, those that go against the trend will appear dimmed with reduced opacity (50%) if the counter-trend setting is disabled.

You also have the option to restrict valid entries to those occurring near the EMA. If enabled, the strategy will only consider signals within a defined maximum distance from the EMA, such as 3 or 4 ticks. This helps focus your attention on entries occurring at key decision points.

Additional features include visual performance optimization. As you scroll left on the chart, older markers will disappear to reduce resource consumption and keep your platform responsive. If you'd like to review those historical signals again, simply reload the chart and they will be restored, displaying what’s available within the current view.

Finally, it’s important to note that although this tool functions like an indicator—visually marking setups—it is implemented as a NinjaTrader strategy. That means it is activated through the strategies panel, but it does not execute trades automatically.