Price Action 2nd Entry Indicator for NinjaTrader 8

Created 25 Aug 2024 · Updated 11 Aug 2025

The Price Action 2nd Entry indicator is a Premium NinjaTrader 8 indicator that shows 2nd Entry signals as defined by Mack's PATS (Price Action Trading System) strategy.

Prerequisites

To properly use this indicator you should have the following prerequisites available.


Description

The idea behind the 2nd entry indicator is that price moves in a two-wave pattern composed of a first pullback that generates a failed attempt to break the first swing in the move, followed by a second high-probability pullback that pushes the price to move a certain number of ticks that can be traded for profit. This pattern happens very frequently during the trading session.

Examples

2000 Ticks Timeframe of ES
Price Action 2nd Entry indicator on ES 2000 Ticks timeframe
Click to enlarge

The indicator draws counting numbers in two colors — green for bullish and red for bearish sequences (these colors can of course be adjusted). Each counting sequence starts with a Higher-High for bullish sequences, or a Lower-Low for bearish sequences; at that swing point, the indicator prints the number 0.

If, after drawing 0 on a level, the price breaks that swing point and makes a new Higher-High or Lower-Low, the drawn 0 is removed and a new 0 is drawn, marking the start of a new counting sequence.

The algorithm then searches for the first failed attempt: the price pulls back at least one tick higher or lower than the previous price bar, then continues going farther from the initial start of the counting sequence (down for a bullish sequence, up for a bearish one). If the price, after pulling back, continues and breaks the initial start of the counting sequence, the pattern is marked invalid and removed from the chart.

After detecting the first failed attempt, the algorithm seeks the second attempt, which is the high-probability entry setup: the second pullback where the price breaks the previous candle's higher (bullish) or lower (bearish) wick, and closes with a green (bullish) or red (bearish) candle.

When this happens, the indicator draws an arrow marking a valid, high-probability entry signal, and can optionally play a sound.

Features

The Price Action Second Entry indicator has a set of unique features:

  • Replaces manual counting efforts with mechanical counting
  • Can play a sound on each detected entry signal along with a drawn arrow
  • Can be run with or without TickReplay on any timeframe

Parameters

We always try to keep the parameters to a minimum.

Market Structure
Swing PeriodSwings are higher lows, higher highs, lower highs, and lower lows. After each price bar close, a swing can be detected, but the next bar (or the second, or third...) can cancel it by creating a new swing of the same type. This parameter sets how many bars is enough to separate two swings of the same type — the higher this value, the fewer swings overall; the lower, the more swings. A value of 3 or 4 is a common choice.
Rendering
Render OpacityThe opacity used to render the sequence counting numbers on the chart.
Bearish ColorDraw color of bearish items.
Bullish ColorDraw color of bullish items.
Show SwingsControls whether swing points are shown on the chart.
Counting Numbers Gap (points)Controls the drawing gap, in points, between the candle wicks and the counting numbers.
Show Signal ArrowControls whether entry signal arrows are shown.
General
Confirmation Mode
  • Bar Close: the 2nd entry confirmation is based on the candlestick close event — a bullish signal only dispatches if the closed bar is green, a bearish signal only if it's red
  • First Tick: the 2nd entry confirmation is based on the first wick tick on the current candlestick — the "2" signal fires as soon as the current candle's high or low wick exceeds the previous candle's wick, regardless of how the candle closes. Can be coupled with an indicator like SuperTrend to filter out counter-trend entries.
Require Previous Candle BreakoutOnly used when Confirmation Mode is Bar Close. When enabled, requires the last bar of the sequence to close above/below its previous bar's high/low wick; when disabled, the confirmation bar only needs its high/low to exceed the previous bar's.
Play SoundEnables playing an alert sound when an entry signal is detected.
Play Sound FileThe file name played on sound alert — can be set to any .wav file on your computer.

Signals & Usage in Strategy Builder

The indicator exposes signal plots that can be used from the Strategy Builder and third-party software such as Bloodhound and AlgoStudio.

Those signal plots are transparent and aren't drawn on the chart. From the Strategy Builder, you can select them and build logic on their values — the Buy signal and Sell signal plots contain the value of the last price when a long/short signal is generated, and 0 otherwise.

Using the signal plots from the NinjaTrader Strategy Builder
Click to enlarge

Download & Installation Instructions

License Requirements

At automated-trading.ch you can choose to either purchase a monthly subscription to use our premium products, or use our free products without subscribing.

In both cases, you need to create an account so you can get a License you can use for both premium and free products.

To obtain your license, simply sign up and then get your license on the billing page.

Important: This is a Premium product. It can be run in Backtest, Playback, and Optimization modes for free; an active Premium subscription is required to run it live.
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Latest Version v1.4.0.0 · Published 1 year ago
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You can also download this strategy — and every other automated-trading.ch strategy or indicator — anytime from your centralized Downloads page.

Installation Steps
1
Import the downloaded .zip file into NinjaTrader using the Import NinjaScript menu item.
2
Open a new chart window.
3
Right-click the chart and choose Indicators... to add the indicator to the chart.
4
Copy/paste your license key, found on the billing page, into the license parameter.
5
After adding the indicator to the chart with a valid license, it runs on the chart's historical data first, then continues running on live market data.

Frequently Asked Questions

General

Yes — if you have an idea that you believe can improve this indicator, use the contact page to send us a message.

No, the source code of the indicator is protected for copyright reasons.

Yes, you can use this indicator without TickReplay, but bear in mind that in this case the indicator will not detect events on historical candles — it will only start detecting them on real-time volume and price data.
Subscriptions Q&A

After you sign up, you'll get access to the billing page, where you can grab your license and use it on every free or premium product. We don't use NinjaTrader's built-in vendor licensing system — we've built our own, where you submit the license number on each product you're using.

Yes, you can cancel/resume your subscription with a click of a button, no questions asked. You don't even need to request something or send a message — you can manage your subscription in a completely autonomous way.

Our products verify the license validity on the 1st day of each month. At that date, you need to provide the license number to the product (with a simple copy/paste) so that it stays valid for the rest of the month.

We do not store payment credentials — they are encrypted and passed to Stripe or PayPal for a safe & secure way to purchase subscriptions on our site.

Please send us a message from the Contact page.

Release Notes

  • Added "Require Previous Candle Breakout" option for bar confirmation mode; Changed parameters order/grouping

  • Fix conflict import issue with Opening Range Breakout Strategy

  • Fix importing the indicator into Ninjatrader bug

  • Added Confirmation Mode parameter ("First Tick" / "Bar Close")

  • Fixed drawing glitch of number "2" signal in Real time; Fix Bug: indicator hides Grid lines when added to chart

  • Added Buy Signal / Sell Signal plots usable in Strategy Builder, Bloodhound, AlgoStudio

  • First Release of the indicator
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Quick Facts
Platform NinjaTrader 8
Category Indicator
Plan Required Premium
Latest Version v1.4.0.0
Last Updated 1 year ago
Downloads 684