A retracement entry zone between roughly the 62% and 79% Fibonacci levels of an impulse leg. It aims to join the trend at a deep, favorable price.
How to identify it
- Clear impulsive leg that broke structure
- Fib drawn from leg start to leg end
- Price retraces into the 0.62–0.79 band
Entry
Enter inside the OTE band, ideally with a lower-timeframe reversal.
Stop loss
Beyond the 100% level (start of the leg).
Target
The leg extreme, then its extension.
Invalidation
Price closes past the start of the impulse leg.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your optimal trade entry (ote) trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.