Learn Structure Optimal Trade Entry (OTE) — the 62-79% Pullback

Optimal Trade Entry (OTE) — the 62-79% Pullback

After an impulsive leg, the highest-probability entry is the deep retracement — sweet spot 70.5%.

OTE is ICT’s named fib window: after an impulse leg (ideally one that began with a liquidity sweep and confirmed with an MSS), the entry zone is the retracement between 61.8% and 79% of the leg, with the sweet spot at 70.5%.

The appeal is structural: you join the new move at wholesale prices with a tight, logical stop just beyond the swing that started the leg.

It becomes an A+ setup when the OTE band overlaps an FVG or order block and the retrace arrives inside a kill zone — time and price agreeing.

How to trade it

  • Measure the leg from the swing extreme to the impulse high/low and wait for price to trade into the 62-79% band.
  • Set the stop beyond the leg origin; typical targets are the leg extreme and the -27%/-62% extensions or the opposing liquidity pool.
  • Skip legs with no displacement or structure break — a fib on a random wiggle is not OTE.

Pitfalls

  • Entering at the 50% level out of impatience — the zone starts at 62%.
  • Using OTE in ranging conditions where legs constantly overlap and retracements run to 100%.

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