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Optimal Trade Entry (OTE)
The 62%–79% retracement zone of an impulsive leg — entering the pullback instead of chasing the move.
What it is
After a displacement leg, the Optimal Trade Entry is the fib retracement band between 0.62 and 0.79 of that leg (0.705 is the midpoint traders watch). It's the discount zone for longs (or premium zone for shorts) where risk is smallest relative to the leg's origin.
Why it matters
Entering at the OTE instead of the breakout cuts your stop distance dramatically and turns the same setup from a coin-flip R:R into a favorable one.
NQ example REAL SCENARIO
NQ sweeps a low and displaces 80 points higher. The OTE sits 50–63 points back down the leg; price retraces into it, holds, and the next leg runs — same idea, half the risk of buying the top of the displacement candle.