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ICT Optimal Trade Entry - OTE PDF Download

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997 views

ICT Optimal Trade Entry - OTE PDF Download

Uploaded by

jzhengrong39
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ICT Optimal Trade Entry – OTE Pattern

Do you want to master ICT optimal trade entry (OTE) to trade like a pro?

ICT optimal trade entry is a continuation setup based on Fibonacci retracement levels to
trade the trend continuation after retracement.

In this article we will be exploring the ICT optimal trade entry from its definition to
identification and to its use.

Now lets start with defining the ICT optimal trade entry (OTE).

What is ICT Optimal Trade Entry Pattern?


ICT optimal trade entry pattern is basically a trend continuation setup after a
retracement, because market does not move vertically down or up it takes retracement
before moving to particular direction.

So having known the direction of market you can use ICT OTE pattern to trade the
continuation of trend after retracement.

ICT Fibonacci retracement levels are key to trade OTE pattern. So before diving deep in
to ICT optimal trade entry pattern lets understand the ICT fibonacci levels for OTE
pattern.

ICT Fibonacci Levels for OTE Setup

To use ICT optimal trade entry pattern you should set your fibonacci retracement levels
to the following as used by ICT.

0 First Profit Scale


0.5 Equilibrium
0.62 OTE level 1
0.705 0TE level 2
0.79 Optimal Trade Entry
1 100% retracement level (Starting Position)
-0.5 Target 1
-1 Target 2
-2 Symmetrical Price
ICT Optimal Trade Entry Pattern in Bullish Market
As you know in bullish market price makes higher highs and higher lows. So before
making a new high price retraces back to previous low which is called price
retracement.

To take a buy trade during the retracement between a high and low in bullish market we
use ICT fibonacci levels for optimal trade entry.
You have to plot the fib from the swing low to swing high and wait for the price to test
ICT OTE levels and get rejected.

For greater accuracy you can plot the fibonacci from body to body ignoring wicks
because wicks may distract you as different brokers may have different prices at wicks.

After price rejection you can execute a buy trade at ICT optimal trade entry levels
setting your stop loss 10/20 pips below the swing low and for profit target you can use
ICT fibonacci levels -0.5 or -1.

A real market example is shown below.

ICT Optimal Trade Entry Pattern in Bearish Market


As you know in bearish market price makes lower lows and lower higher. So before
making a lower low price retraces back to previous high which is called price
retracement.

To take a sell trade during the retracement between a low and high in bearish market
we use ICT fibonacci levels for optimal trade entry.

You have to plot the fib from the swing high to swing low and wait for the price to test
ICT OTE levels and get rejected.

As mentioned earlier for greater accuracy you can plot the fibonacci from body to body
ignoring wicks because wicks may distract you as different brokers may have different
prices at wicks.
After price rejection you can execute a sell trade at ICT optimal trade entry levels setting
your stop loss 10/20 pips above the swing high and for profit target you can use ICT
fibonacci levels -0.5 or -1.

A real market example is shown below.

Final Thoughts
While using ICT optimal trade entry setup in trading, we should keep in mind that no
strategy is foolproof in trading, so you should not risk all your capital on this strategy.

Plus to mitigate your risks, you should always trade with stop loss in place to keep your
equity safe.

IS ICT Optimal Trade Entry a Reliable Model for Trading?


Yes ICT optimal trade entry is most reliable model of ICT trading strategy as it is a trend
continuation model, until the trend reverses you can trade using ICT OTE SETUP.

Is ICT OTE a Day Trading Strategy?


Yes! ICT OTE is day trading method but you can use it for swing and scalping also as it
is a trend based method, by following the market trend in any time frame you can trade
with ICT OTE.

Like for swing trade setup you may follow daily timeframe trend and you can use ICT
OTE levels for trade entry.

Is there any Specific Time for ICT OTE setup?


No there is no specific time of the day for ICT OTE.
But as you know kill zone times are most important time of the day so preferably you
should look for ICT OTE setup during ICT Kill Zones timings.

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