Optimal Trade Entry (OTE): High-Probability Fibo Entries
Optimal Trade Entry (OTE) is the golden ratio area developed by Michael J. Huddleston based on the Fibonacci Retracement tool. This zone provides the entry point with the highest probability of winning and an extremely short stop loss (SL).
1. Parameters of OTE Area
When using the Fibonacci tool to drag from bottom to top (for buy orders), the OTE parameters that need to be set include:
- 0.62 (62%): The starting point of the OTE zone.
- 0.705 (70.5%): The center point of OTE (Sweet Spot - The most ideal entry point).
- 0.79 (79%): Lower limit point of OTE region.
Buy setup in the OTE Fibonacci zone
2. Combining OTE With Other Factors (Confluence)
Never buy just because the price hits 70.5%. Look for Confluence when the OTE zone coincides with an old **Fair Value Gap (FVG)** or an old **Order Block (OB)** located at Discount. That is the trade setup with the highest probability of success.
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