Optimal Trade Entry (OTE) Explained Step-By-Step

Finance-Focused Summary (OTE Trading Method)

The presenter explains an Optimal Trade Entry (OTE) approach for timing long entries after price creates an unbalanced range (a strong, one-direction move). The idea is to wait for price to rebalance/pull back to predefined OTE levels and then reject, signaling that buyers still control the area.

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Core Setup / Market Structure Logic

1. Price creates a “huge leg” in one direction, forming an unbalanced range.
2. After that move, price is expected to pull back to rebalance, often first toward the 50% area of the move.
3. Entry logic:
   • Wait for price to return to an OTE level zone (or the 50% of the move).
   • Confirm rejection (for longs, price turns back upward).
   • Add confluence to improve probability—especially:
     • Standard deviation levels
     • Fair value gaps (FVG)
     • Change of state (concept mentioned)

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OTE Levels and How They’re Used

The method uses a GAN/box-style tool with multiple OTE zones.

• The presenter says the three most important OTE levels are the “most probable.”

Typical behavior described:

• Price comes into the range roughly around “79 to 705” (Auto-subtitle likely meant OTE fib ratios such as ~0.79 to 0.705; exact mapping is uncertain due to subtitle errors.)

• Then price rejects off that area.

Emphasis on the 50% Retracement

The 50% retracement of the unbalanced leg is repeatedly emphasized as a common decision point:

If you’re still bullish, you want to see the 50% of the range hit before continuing higher.

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Step-by-Step Framework (As Stated)

• Identify an unbalanced range (a strong directional leg).
• Decide the likely “rebalance” target:
  • Prefer the 50% retracement (common confirmation area).
  • Also consider other OTE levels (including the “three most important” ones).
• Look for rejection at those levels.
• Use a lower-timeframe trigger (mentioned as 1 minute / 1 minute 30 seconds) tied to a change of state of delivery / inverse / value gap concept.
• Optionally add standard deviation as additional confluence for better entry precision.
• Stops / targets (from examples):
  • Stops placed below the wick.
  • Targets can be structured using standard deviation levels (e.g., “the 2” then “the 3” referenced).

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Time / Session Examples Mentioned

The presenter gives example setups across sessions:

• Asia (Thursday)

  • Long when Asia opens.
  • Price taps 50%, rejects, then continues higher.

• London (Thursday)

  • Long setup using sweep + rejection off an OTE-related level and a fair value gap concept.
  • Note: the presenter says they don’t trade London because they’re asleep.

• Friday AM

  • The presenter says they don’t trade it (called the “worst day”).

• New York (Following session)

  • They wait for New York to reach at least half of the 50% before continuing higher.
  • They then describe:
    • Market open tapping 50%
    • Bullish continuation after rejection/confirmation

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Key Numerical References (OTEs / Confluence Levels / Trade Magnitudes)

Numbers reflect what appears in subtitles; some may be transcription errors for decimals/labels.

• OTE zone range: “79 to 705” (likely shorthand for ~0.79 to ~0.705 or similar; exact mapping uncertain)
• 50% is repeatedly the main decision point.
• Explicit level cited: 0.618
• Further references include: 618, and refinement mentions like “0.5” / “0.5 of each level.”

Standard Deviation Confluence

• A level referenced: -2.25, described as lining up with 50% (double confirmation).
• Then: negative 2.5 tap and reject (triple confirmation).
• Targets referenced: “the 2” and “the 3.”
• Another mention: “negative 3 to the tick” and an “absolute short off that standard deviation level” (context appears tied to the standard deviation framework).

Trade outcome examples

• Example mention: ~100 point trade (about reaching a rebalance/leg level).
• Limit order example:
  • If placing a limit order on “0.79”, they claim 112 points captured.
  • If waiting for extra confluence (e.g., sweep + 1-minute inverse/value-gap confirmation + rejection), entry improves.
  • Stop placement example: below the wick.
  • Targeting is described, though not fully quantified beyond the example.

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Instruments / Assets

• No specific tickers, ETFs, bonds, commodities, or crypto are mentioned.
• The discussion is methodological, focusing on the entry-timing framework.

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Risk Management / Cautions (From Examples)

• Stops below the wick
• Use rejection confirmation and confluence to make the trade more probable
• No detailed position-sizing/risk-per-trade rules are provided in the subtitles.

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Disclosures / Disclaimers

• None stated in the provided subtitles.

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Presenter / Source

• Presenter appears to be a single trader using “guys” style wording.
• No name or additional co-presenters are provided in the subtitles.