OTE PATTERNS

OTE PATTERNS

Standard OTE

OTE Pattern – Long: Don’t react to price movements, anticipate. Anticipate and trade into key support levels. Buy as price goes down and approaches the swing low. If bar "wicks", you can move stops or take trades off to break even.
  1. Anticipate price to go down to support level and bounce up. The touch of the support is #1.
  2. Bounce up to a short term high at point #2. Anticipate trade to go back down and retest support.
  3. Look to enter long in the ""Sweet Spot"" (Between 62 and 79 levels ~70.5)
  4. First take profit point would be when trade reaches point #2 price or 20 pips.
  5. Protective stop loss is 10 pips minimum below point #1.

OTE Pattern – Short: Don’t chase price action. If price goes up, don’t assume it will always move up. Anticipate and trade short into key resistance levels. Sell as price goes up and approaches the swing high. If bar "wicks", you can move stops or take trades off to break even.
  1. Identify, anticipate price to go down to resistance level and retraces down. The touch of the resistance is #1.
  2. Retrace down to a short term low at point #2. Anticipate trade to go back up and retest resistance.
  3. Look to enter short in the "Sweet Spot" (Between 62 and 79 levels ~70.5)
  4. First take profit point would be when trade reaches point #2 price or 20 pips.
  5. Protective stop loss is 10 pips minimum above point #1.

ICT Reflection Pattern - The Anti-OTE

Buy Example: You'll have a significant low and you anticipate the move is to chase stops below the level.  In order to approximate the price level to enter, draw a Fib from low to high and look to go long at the 100 level. When looking to the left, it will appear to be an OTE Reflection.
You can pull the Fib from the high to line up the previous low at the OTE level and you'll see how the recent low at the 100 level was spot on.
Sell Example: You'll have a significant high and you anticipate the move is to chase stops above the level.  In order to approximate the price level to enter, draw a Fib from recent high to low and look to go short at the 100 level.
You can pull the Fib from the low to line up the previous high at the OTE level and you'll see how the recent high at the 100 level was spot on. When looking to the left, it will appear to be an OTE Reflection.

Hidden OTE
You can draw Fibs from other important areas of confluence like recent highs/lows or session highs lows to find an OTE.