# ICT OTE, Premium and Discount Dealing Ranges · DT Academy > Pick a dealing range you can defend, mark equilibrium and ICT's OTE levels at 0.62, 0.705 and 0.79, and know when to redraw the range. [Back to ICT Concepts](https://www.thedtterminal.com/academy/courses/ict-concepts) Lesson 5Dealing ranges, premium, discount and OTE Chapters done # Dealing ranges, premium, discount and OTE Lesson 05 · 4 min read · By DT Terminal Which swing anchors a dealing range, equilibrium, ICT's OTE band at 0.62, 0.705 and 0.79, when a range is spent, and the 20, 40 and 60 day ranges. Unlock the full lesson in the app Worked examples, the quiz and the interactive tools are in the app. Free account. [Continue in the app, free](https://www.thedtterminal.com/login?signup=true&redirect=%2Fjournal%2Facademy%2Fict-dealing-ranges-and-ote) Chapter 1 of 5 ## The dealing range A **dealing range** is the most recent meaningful swing low to swing high, or high to low. Meaningful means the swing swept liquidity, as in [Liquidity the ICT way](https://www.thedtterminal.com/academy/ict-liquidity), or the leg away from it broke structure. Draw it with the Fibonacci tool from [Day 17](https://www.thedtterminal.com/academy/the-golden-zone), low to high when bullish, high to low when bearish. Anchor it on a minor swing and every level from it, midpoint included, is **close to random**. **The anchor decides everything.** Write down which swings qualify, and **anchor on the same kind every time**. Write the range rule into your strategy In Strategies, under Before the trade, add the range rule in words you can check on a chart. **Go deeper** For example: "the range runs from the swing that swept a prior low to the high that closed above the last lower high." Chapter 2 of 5 ## Equilibrium, premium and discount **Equilibrium** is the range's 50% line. Above it is **premium**, below it **discount**. [Day 17](https://www.thedtterminal.com/academy/the-golden-zone#premium-and-discount) covers the idea; ICT applies it to the dealing range. - In a bullish range, look to **buy in discount**, below equilibrium. - In a bearish range, look to **sell in premium**, above it. Price in the wrong half is not a signal the other way. It is a reason to wait. A pullback that never reaches equilibrium gives this method no entry at all. Chapter 3 of 5 ## Optimal trade entry: 0.62, 0.705 and 0.79 **Optimal trade entry** (OTE) is the 0.62 to 0.79 band of the leg retraced, deep in discount or premium. ICT singles out its middle, 0.705. Nothing makes 0.705 special; **the band is a definition to test**. Dealing ranges ### Three pullbacks, bullish and bearish - OTE, 0.62 to 0.79 - Equilibrium, 0.5 - The range Bullish range swing low to swing high, buy in discount Bearish range swing high to swing low, sell in premium Into OTE the pullback reaches 0.62 to 0.79 of the leg Stays in premium it never reaches equilibrium, so there is no OTE Spent a body closes beyond the range: redraw it **Read down a column.** Only the top row gives an OTE entry. The middle row never reaches discount, and the bottom row ends the range. Schematic candles, not market data. Worked example ### Example 01: `EURUSD` H1: a pullback into OTE The worked example, with every number walked through, is in the app. [Continue in the app, free](https://www.thedtterminal.com/login?signup=true&redirect=%2Fjournal%2Facademy%2Fict-dealing-ranges-and-ote%3Fsection%3Dote%23ote) Free account Measure pullback depth in the backtester Replay months of `EURUSD` H1. For each range passing your anchor rule, note the Fib depth. After 50, count how many reached the band. **Go deeper** Be careful with the precision of 0.705. **No study shows price reacts there** more than chance. It is the middle of the band, nothing more, and the band itself is something to measure on your market, not assume. Chapter 4 of 5 ## When the range is spent A range describes one leg. Once price makes a new leg, **the old range describes nothing**. Keeping it on the chart is the second common mistake. The test: once **a candle body closes beyond the far end** (above a bearish range's high, below a bullish range's low), the range is spent. **Redraw from the new swings**. Worked example ### Example 02: `XAUUSD` H1: a bearish range that is spent The worked example, with every number walked through, is in the app. [Continue in the app, free](https://www.thedtterminal.com/login?signup=true&redirect=%2Fjournal%2Facademy%2Fict-dealing-ranges-and-ote%3Fsection%3Dwhen-it-is-spent%23when-it-is-spent) Free account **Example 2, step by step** Both ends qualify: the swing high sweeps the prior high at 4,074.00, and the fall closes below the last higher low at 4,059.00. For a bearish range, the levels count up from the low, so 0.62is the band's lower edge and 0.79 its upper edge. After the close above the range high, the next range starts from the swing low and whatever new high this leg makes. Chapter 5 of 5 ## Bigger frames: 20, 40 and 60 days ICT also frames bigger ranges with what he calls **IPDA data ranges**: the high and low of the last 20, 40 and 60 trading days on the daily chart. IPDA stands for Interbank Price Delivery Algorithm. Treat the name as **a label, not a fact**. No public evidence shows a central algorithm delivering price. The useful part is the definition: three ranges anyone can mark the same way, whose highs and lows you can test as liquidity and whose midpoints you can test as premium and discount. Quick review ## Check yourself Quick review · 0 of 0 [All lessons in ICT Concepts](https://www.thedtterminal.com/academy/courses/ict-concepts) [Previous](https://www.thedtterminal.com/academy/ict-liquidity) ## Liquidity the ICT way Lesson 04 · 6 min read [Next in ICT Concepts](https://www.thedtterminal.com/academy/ict-fair-value-gaps) ## Fair value gaps the ICT way Lesson 06 · 5 min read ## Try it on your own account Connect a broker and DT Terminal verifies every trade against it. Free to start. 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