Optimal Trade Entry (OTE)
An entry model centered on the 61.8%–79% Fibonacci retracement zone, used to find better risk-reward entries during trend continuation.
OTE is a widely used ICT entry model. The core idea: after a clear impulse leg, price often retraces into the 61.8%–79% Fibonacci zone (sometimes extended to 88.6%) before continuing in the original direction. This zone is referred to as the OTE Zone.
Using OTE correctly requires first accurately marking the start and end of the impulse leg, usually the swing created by a clear BOS or structural shift. Mis-marking the impulse leg distorts the OTE zone and undermines entry precision.
OTE is rarely used in isolation. Most strategies overlay an Order Block, FVG, or prior structure point as a 'confluence zone' — only when the Fibonacci retracement zone coincides with these structures does the signal's reliability meaningfully increase.
For risk management, stop-loss on an OTE entry is typically placed just beyond the start of the impulse leg, while take-profit targets the prior structural high/low or a liquidity pool — creating a clearly quantifiable risk-reward framework.
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