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Optimal Trade Entry (OTE): ICT's Fibonacci retracement zone

The OTE is the 62% to 79% retracement of a strong move, with 70.5% in the middle. How to draw it on the right swing, combine it with a gap or order block, and set targets.

2026-10-15 · 2 min read · ICC Charts

After a strong move, price rarely continues in a straight line. It pulls back first. The Optimal Trade Entry (OTE) is ICT's name for the part of that pullback where a continuation entry offers the best price for the risk: the 62% to 79% retracement of the move, with 70.5% as the sweet spot.

Drawing it on the right swing

  1. Find a move that broke structure with displacement (a strong candle that closed past a swing high or low).
  2. For a bullish OTE, draw the Fibonacci tool from the swing low where the move started to the swing high it made.
  3. The zone between the 0.62 and 0.79 levels is the OTE. The 0.705 level is its centre.

The most common mistake is drawing it on a random swing. The move should have taken liquidity first and then shifted structure; a slow drift is not a good anchor.

Why that zone

A pullback that stops before 50% often means the move is too strong to wait for, and one that goes past 79% puts the start of the move at risk. The 62-79% band sits in the discount part of the move for a buy (or premium for a sell), so you are buying cheap within the swing.

Make it stronger with confluence

Stop and targets

The stop goes beyond the start of the swing (below the swing low for a buy). Many traders take first profit at the old swing high and use Fibonacci extensions (for example -0.27 and -0.62 beyond the swing) as further targets.

In ICC Charts

The OTE tool in the drawing tools marks 0.62, 0.705 and 0.79 plus extension levels, and the Premium / Discount + OTE layer draws the zone for you. The scanner's Optimal Trade Entry model (M4) looks for OTE entries in the London and New York killzones on the 5-minute chart. Open the terminal or see the models.

Education only. Fibonacci levels are a guide, not a promise. Practise on a demo account first.

Try it on a live chart

Open ICC Charts in your browser, free, with the ICT and VSA layers and the model scanner.

Open the terminal →

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