Tool
Fibonacci OTE / Equilibrium
calc.fibonacci_ote
Inputs
The swing leg to retrace, as a zigzag leg (its start and end pivots). Wire it from a zigzag or swing detector; its low and high anchor the 0 and 1.0 of the OTE scale.
The current price line tested against the zone — usually the bar close. The output flags true on bars where this price sits inside the OTE band.
Outputs
A bundle describing the OTE band and equilibrium plus a flag for whether the wired price is currently inside the zone — wire the flag into a filter, or the zone bounds into an order’s entry and stop.
Fibonacci OTE marks the ICT “Optimal Trade Entry” zone — the slice of a pullback between roughly the 62% and 79% retracement where smart-money entries are said to cluster. It also flags the 50% equilibrium that splits a leg into a discount half and a premium half.
How it works
You wire in the swing leg and the current price, and the tool retraces the leg using Fibonacci percentages. The band between `ote_low_pct` and `ote_high_pct` (with `ote_mid_pct` as its sweet spot) becomes the OTE zone, `equilibrium_pct` (the 50% line) separates discount from premium, and `deadband_pct` adds a small tolerance so price brushing the edge still counts as inside. The output flags whether price is currently in the zone.
Configuration
The shallow edge of the OTE zone, as a retracement fraction of the leg — the classic value is 0.62 (a 62% pullback). Price must retrace at least this far to enter the zone.
The center of the OTE zone — its preferred fill point, typically 0.705 (the midpoint of 0.62 and 0.79). Use it to rank entries that land deepest in the sweet spot.
The deep edge of the OTE zone, classically 0.79 (a 79% pullback). Past this the retrace is treated as too deep and the setup is usually invalidated.
The fraction that divides the leg into a discount half (below) and a premium half (above) — almost always 0.5. Longs are favoured at a discount, shorts at a premium.
A small tolerance added around the zone edges so price that just grazes the boundary still registers as inside — it stops the in-zone flag from flickering on and off near 0.62 or 0.79.
Connects to
Examples
- In an uptrend, wire the up-leg and the close so the OTE flag fires only when price pulls back into the 0.62–0.79 discount zone, then gate long entries on that flag.
- Read the equilibrium level at 0.5 to take longs only while price trades at a discount (below it) and shorts only at a premium (above it).
Common mistakes
- Wiring a leg in the wrong direction so discount and premium are flipped — the OTE for a long sits in the lower half of an up-leg, not the upper half.
- Setting deadband_pct too wide, which fattens the zone until almost every pullback counts as ‘in OTE’ and the signal loses its edge.