ICT Fibonacci Levels — OTE 62–79%, the 70.5% Sweet Spot and -0.27/-0.62 Targets

Fibonacci is probably the most "retail" tool in the history of technical analysis — and at the same time the foundation of one of the most precise entries in the ICT method. The difference lies in the settings and the way it's used. ICT throws out the classic 38.2% and 61.8%, keeps a handful of its own levels, and turns the retracement tool into a complete system: an entry zone (OTE 62–79%), a center point (70.5%) and a ladder of targets on the negative side. In this article I show the exact TradingView configuration, how to draw it in an uptrend and a downtrend, and the rules without which these levels don't work. The classic approach to retracements is covered separately in the article on the Fibonacci retracement strategy — it's worth knowing both, because the differences are instructive.

Why ICT uses Fibonacci at all

In the ICT framework, the Fibonacci tool measures one thing: the depth of the retracement after an impulse. A trending market moves in legs — impulse, correction, impulse. A Fibonacci stretched across the last impulse answers two questions: where the correction becomes an opportunity (the OTE zone) and how far the next leg may travel (the negative projections).

The tool connects directly to the premium and discount framework. The 0.5 level is equilibrium — the midpoint of the impulse. In an uptrend, everything below equilibrium is discount, the buying zone; the OTE zone sits deep in discount, between the 62% and 79% retracement. In a downtrend it's mirrored: the OTE lands in premium, above the midpoint. Buy cheap, sell expensive — Fibonacci merely gives that idea numerical precision.

Tool settings in TradingView — step by step

1. Open the Fibonacci retracement tool from the left toolbar (shortcut Alt+F).
2. Open the tool's settings (right-click → Settings).
3. In the coefficients tab, delete all the default levels except 0 and 1.
4. Add the ICT retracement levels: 0.5, 0.62, 0.705 and 0.79. The 0.705 level is the middle of the OTE zone.
5. Add the target projections: -0.27, -0.62, -1.0, -2.0, -2.5 and -4.0.
6. Enable price and level-line display so labels print at every value.
7. Save the configuration as an "ICT Fib" template — from now on you apply it with one click.

The OTE zone — 62%, 70.5%, 79%

According to ICT, the ideal entry zone in an uptrend lies below the midpoint of the impulse — specifically at the 62%, 70.5% and 79% retracement levels. This trio forms the Optimal Trade Entry zone, at the heart of which sits 70.5% — the sweet spot and the most frequently quoted single entry level in the whole model. The complete entry strategy built around this zone is broken down in the article on the Optimal Trade Entry.

Why 70.5% rather than the classic 78.6% or 61.8%? There's no number-sequence mysticism here — 70.5% is simply the midpoint of the zone spanning 62% to 79%. The practical justification is different and more important: on a healthy retracement after an impulse, the 70.5% level very often lands exactly inside the FVG or order block left behind by that leg. And that's the crux: the level by itself is not a signal. It gains meaning only in confluence — when a gap, a block or a liquidity pool sits inside the OTE zone.

The depth of the retracement also carries information about the strength of the move. A correction that doesn't even reach 62% usually means the structure is too shallow and weak — the setup is void and you wait for the next leg. A retracement beyond 79%, in turn, calls the impulse itself into question.

Drawing in an uptrend

In an uptrend the market prints higher highs and lows, pulling back before each new high.

1. Identify the impulse: a significant swing low and the swing high drawn from it. The leg has to start from something concrete — a liquidity sweep or an MSS.
2. Stretch the tool from the low to the high of the impulse.
3. Wait for price to retrace into the OTE zone — into the neighborhood of 70.5%.
4. Look for bullish confirmation on a lower timeframe: an MSS, a reaction from an FVG or order block sitting in the zone.
5. After confirmation, enter long. Stop below the swing low (the 1.0 level), targets from the negative projections.

Drawing in a downtrend

The mirror image: lower lows and highs, corrections upward before each new low. You stretch the tool from the high to the low of the bearish impulse — the drawing direction matters, because reversing it puts the entire OTE zone on the wrong side of the chart. You wait for a correction into the 62–79% zone (this time it's premium), look for bearish confirmation on the LTF and enter short with the stop above the swing high.

Negative projections — the ladder of targets

The negative side of the tool holds the standard-deviation projections — ICT's way of setting targets. Instead of guessing how far the next leg will travel, you project multiples of the measured impulse:

• -0.27 — the first, short-term internal target; it often coincides with the nearest liquidity pool beyond the impulse extreme,
• -0.62 — the measured move; a natural point to move the stop to breakeven and take partials,
• -1.0 — full symmetry, i.e. "one full leg length"; the typical main target,
• -2.0 — full expansion; it often lines up with the previous session's high or low,
• -2.5 — the extended target for clear trend days,
• -4.0 — the maximum projection, used for weekly theses and news-driven moves.

A practical workflow: partial profit at -1.0, the rest of the position managed toward -2.0 and beyond — but only when a higher-timeframe liquidity magnet genuinely sits further out. The projections are a map of possible stops along the way, not a promise the market will visit them all.

What it works best on, and when

The ICT settings are instrument-agnostic, but not agnostic about the character of the move. The tool needs clean impulse legs that retrace just as cleanly into the OTE zone — and those are printed above all by liquid markets: NQ and ES futures, the major forex pairs (GBP/USD, EUR/USD) and gold. On crypto, BTC and ETH behave decently, but small altcoins with choppy price action produce impulses without healthy corrections — there the OTE zone can be a fiction.

Timing matters too. Impulses worth measuring form in the killzones — London (2:00–5:00 AM ET) and New York (7:00–10:00 AM ET) — and the negative projections work best with the algorithmic delivery of price in the New York morning macro window, around 9:50–10:10 AM ET. A Fibonacci stretched over a leg from the dead of the Asian night is measuring noise.

Stop loss

The stop for an OTE entry always lives beyond the 1.0 level — beyond the extreme you drew the tool from. The buffer depends on the instrument: 10–20 pips on forex pairs, around 5–10 ticks on indices like NQ/ES, 50–100 cents on gold. On crypto apply the same logic — a fraction of ATR beyond the swing low/high instead of a fixed number. The buffer is non-negotiable: a stop glued exactly to the 1.0 level is an invitation for the wick that collects your position moments before the real move.

Common mistakes

• Drawing from random swings. The tool is stretched across the last significant impulse — a leg initiated by a liquidity sweep or an MSS. A Fibonacci from a random high to a random low produces random levels.
• Entering on every correction. Not every retracement reaches the OTE. If price turns back before 62%, the structure is too shallow — you wait for the next leg instead of chasing.
• A level without confluence. 70.5% means something only when an FVG, an order block or equal extremes sit inside the OTE zone. A line on the chart by itself is not a trade.
• Reversed drawing direction. Long: from the low to the high. Short: from the high to the low. Getting it backwards flips the OTE zone and all the projections.
• No predefined targets. Retracements without the negative projections are half the tool — profit-taking turns into guesswork.
• A stop that's too tight. The 1.0 level without a buffer regularly hands the position to a hunting wick.

ICT-style Fibonacci works best with the impulse drawn on M15 and a drop to M5–M1 for the entry signal inside the zone. The OTE zone itself, though, is only the mechanics — the complete entry model, with killzone context and swing selection, is in the article on the Optimal Trade Entry. The comparison with the classic use of retracements is in the piece on the Fibonacci retracement strategy, and the theory of cheap and expensive zones — in the article on premium and discount. To start, set up the "ICT Fib" template from the list above and review the last ten clear impulses on your market: check how many corrections stopped inside the 62–79% zone and what sat in that zone besides the level itself.

FAQ

Rafał — Krypto Bez Ściemy

Trader and founder of Strefa Tradingu. He’s been breaking crypto down on YouTube for years — no hype, no signals, with a focus on market structure and risk management.

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