Advanced
NQ, ES, GC.Optimal Trade Entry (OTE)
After an impulsive leg that breaks structure, draw a Fibonacci from the leg's start to its end. The 62% to 79% zone is the OTE. Combined with a fair value gap or order block inside that zone, it gives the best risk-to-reward continuation entry available.
Why it works
Deep retracements let you take the same trade as the impulse crowd, but with a fraction of the risk.
Timeframes
5m and 15m legs.
Session
All, best in New York.
The checklist
- 1An impulsive leg that breaks structure.
- 2Price retraces into the 62–79% zone.
- 3A gap or order block sits inside the zone.
Execution
Entry
At the 70.5% level, or at the gap inside the pocket.
Stop
Beyond the origin of the leg.
Target
The extension of the leg — 1.5x to 2.5x.
When you should not take it
- If price closes beyond the origin of the leg, the setup is dead. No averaging down.