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ICT Optimal Trade Entry (OTE): Fibonacci Retracement Guide

Optimal Trade Entry, commonly abbreviated OTE, is an ICT concept using a Fibonacci retracement range to identify a preferred area for a potential entry. The zone is a planning framework, not proof of a reversal.

Educational note: ICT is a trading framework. Examples on this page are educational and do not guarantee a trading outcome. Test any rules before risking capital.

What is OTE?

OTE is commonly associated with the 62%–79% Fibonacci retracement area of a selected price swing. The exact swing and levels should be fixed before testing.

Choose the dealing leg

Define whether the range comes from a displacement leg, a specific high-to-low move or another objective rule.

Use OTE with context

Traders may combine OTE with structure, liquidity, displacement or an order block. Confluence does not remove market risk.

Backtest the rule

Record the exact range, entry zone, stop, target, timeframe and session. Test consecutive examples rather than only charts where price respected the zone.

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