OTE and the midnight open: where to enter inside the range

The optimal trade entry retracement, the New York midnight open and the weekly open, and how they combine with premium and discount.

ICTIntermediate3 min read4 chaptersBy Rao Umer · 14 Oct 2026
In plain words

After a strong move, price usually pulls back before it continues. The OTE band (62% to 79% of the move) is where those pullbacks often end. The midnight open tells you whether price is cheap or expensive for the day.

In this lesson
  1. Premium, discount and the 50% line
  2. Optimal trade entry (OTE)
  3. The midnight and weekly opens
  4. Putting it together
01

Premium, discount and the 50% line

PREMIUMDISCOUNTEQ 50%
Above 50% is premium, below 50% is discount.

Split any range in half. Buying in the lower half (discount) gives a better price and a tighter stop than buying in the upper half (premium). RTC AI shades both halves and tells you where price sits.

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    The cheap half of the range.

    02

    Optimal trade entry (OTE)

    OTE 62–79%highlow
    The 62% to 79% retracement of the last swing.

    The OTE is the zone between the 62% and 79% retracement of the last swing. In a healthy trend, pullbacks often end there. It is deep enough to give a good price and close enough to the swing to keep the stop small.

    03

    The midnight and weekly opens

    MIDNIGHT OPEN00:00below the open = cheap for the day
    The New York midnight open splits the day into cheap and expensive.

    The New York midnight open (MO) and the weekly open (WO) are reference prices. In a bullish day, the best buys usually come below the midnight open. In a bearish day, the best sells come above it. RTC draws both as grey dotted lines.

    04

    Putting it together

    1. BiasUse structure on H1 or H4 for direction.
    2. LocationBuys in discount and below the midnight open; sells in premium and above it.
    3. ZoneAn order block or gap inside the OTE band.
    4. TimeInside the London or New York killzone.
    ASIALONDONNY AMSBNY PM
    Killzones: the hours when gold usually moves.

    Key takeaways

    • Premium and discount tell you whether price is cheap or expensive.
    • OTE is the 62% to 79% pullback zone.
    • The midnight open is the daily cheap or expensive line.
    • Location, zone and time together beat any single tool.
    Check yourself

    Three quick questions

    0 / 3
    01What retracement is the OTE band?
    02On a bullish day, where do the best buys usually come?
    03OTE is…
    Next lessonLiquidity sweeps and swing failure (SFP): PDH, PDL, Asia and equal highsSMC · Intermediate · 4 min → RTC Mentorship · $200Want this applied to live charts?See the mentorship →

    Educational content only. Not financial advice. Chart examples are illustrations, not real trades.