A Point of Interest (POI) is any zone on a chart where institutional orders are likely concentrated — order blocks, fair value gaps, liquidity pools, or structure levels. The Optimal Trade Entry (OTE) is a Fibonacci-based technique to pinpoint the best price within a POI to enter with maximum reward and minimum risk.

Types of Points of Interest

POI TypeWhat Creates ItStrength
Order BlockLast candle before institutional impulseHigh
Fair Value GapPrice inefficiency during fast moveHigh
Breaker BlockFailed OB that flips roleHigh
Swing High/LowStructure points with liquidityMedium
Previous Day High/LowLiquidity from prior sessionMedium
Opening GapOvernight gap = FVG on daily chartMedium-High

Optimal Trade Entry (OTE)

The OTE uses Fibonacci retracement levels to find the highest-probability entry within a swing. Draw Fibonacci from the swing low to the swing high of the recent impulse:

OTE Zones — Most Important Fibonacci Levels in SMC 61.8% — First OTE level (standard entry) 70.5% — Middle of OTE zone 79.0% — Deepest OTE level (tightest stop) OTE Zone = 61.8% to 79% of the retracement
Why 61.8%–79%?
Institutions buy during retracements, not at highs. The 61.8%–79% zone represents a "discount" relative to the recent swing — institutions accumulate here knowing they have maximum upside to the swing high. This is the most statistically consistent entry zone in SMC across all markets.

Using OTE on NSE

  1. Identify HTF (daily) structure is bullish (Higher Highs, Higher Lows)
  2. Wait for a strong impulse move up (the "leg" you will retrace)
  3. Draw Fibonacci from the swing low to the swing high of that leg
  4. Wait for price to retrace to the 61.8%–79% OTE zone
  5. Look for a POI (OB or FVG) within the OTE zone
  6. Enter when price shows rejection from the POI within OTE
  7. Stop loss: below the 100% level (swing low)
  8. Target: previous swing high (or next HTF liquidity level)

Premium vs Discount — Reinforcing OTE

The Complete Rule:
Structure bullish + Price in Discount (below 50% of range) + OTE zone (61.8%–79%) + POI (OB or FVG) present = Highest probability long entry

All four conditions must align. Missing even one reduces the trade quality significantly.

NSE Real Use Case

NIFTY rallies from 22,000 to 23,500 (a 1,500 point impulse). During the subsequent pullback, draw Fibonacci: 61.8% = 22,573, 79% = 22,315. NIFTY pulls back to 22,480 — within the OTE zone — where a bullish order block from the prior accumulation phase also sits. This OB + OTE confluence at 22,480 is the optimal entry. Stop at 22,300 (below 79%). Target 23,500 (previous high). Risk: 180 points. Reward: 1,020 points. Risk-Reward: 1:5.7.

The OTE concept works particularly well on BANK NIFTY 15-minute charts during the morning session. Draw the Fibonacci from the overnight low to the morning high (or vice versa) and watch for price to retrace to the 61.8%–79% zone before the next directional move.