Trading
Optimal Trade Entry (OTE)
The ideal price zone for entering a trade, often at Fibonacci levels.
Full Definition
Optimal Trade Entry (OTE) is a smart money concept referring to the best price zone for trade entry, typically at the 62-79% Fibonacci retracement level of a price move. This zone offers the best risk-reward ratio as it's deep enough to catch a good entry but not so deep that it invalidates the trade idea.
Example
After a bullish impulse move, a trader waits for price to retrace to the 70.5% Fibonacci level (OTE zone) before entering a long position.
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