Optimal Trade Entry (OTE)
Also: OTE · Optimal Trade Entry
Definition
Optimal Trade Entry (OTE) is ICT's flagship retracement zone — the 62%–79% Fibonacci range measured from the most recent swing, where the highest-probability continuation entries are found. It is where the algorithm typically returns price after displacement to fill orders before continuing toward the draw.
Key characteristics
- Measured from swing low to swing high (longs) or high to low (shorts)
- Primary levels: 62%, 70.5%, 79%
- 70.5% is the "sweet spot" — often aligned with an order block or FVG
- Works on any timeframe but most used 15m–1H for intraday
- OTE is the entry range, not the setup — still needs narrative + liquidity sweep
- Called the "flagship pattern" of the ICT YouTube channel
How to use
Identify a displacement leg aligned with HTF bias. Draw Fib from the leg's origin to its extreme. Mark 62–79%. Wait for price to retrace into that zone and for a PD array inside it. Enter on reaction; stop beyond the leg's origin; target the next external liquidity pool.
Common mistakes
- Taking OTE against HTF bias — the "pattern" without context loses edge
- Entering blind at 62% without a PD array inside the zone
- Ignoring the swing selection — wrong swing, wrong OTE
Source quotes
"Run back above the bodies of these candles into the 62% of tradesman level. Because 62% and 79% of tradesman level are what I teach is optimal trade entry range."
"After trading down and closing in a 50 minute time frame. Fair value gap. And then it trades into an optimal trade entry.
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