At Green Red Candle LLP, we believe trading success is rooted in synergy between proven technical indicators. By blending Market Structure, Trendlines, Fibonacci Levels, RSI Momentum, and the OTE (Optimal Trade Entry) zone, traders can identify high-probability opportunities in any financial market.

Understanding the Building Blocks

1. Market Structure

Market structure reveals the trend through sequences of swing highs and lows. An uptrend forms with rising highs and lows, while a downtrend is defined by falling highs and lows. Recognizing market structure helps prioritize trades in tune with the prevailing direction.

2. Trendlines

Trendlines are drawn by connecting significant price lows (support) or highs (resistance). They visually represent areas where price may rebound or reverse, helping forecast trend continuations or breaks.

3. Fibonacci Retracement & The OTE Zone

Fibonacci retracement is commonly used to mark possible levels where price may pull back before resuming the trend. The OTE zone (Optimal Trade Entry) is especially valuable—it refers to the area between the 50% and 60% Fibonacci retracement. This is often where deep corrections find support (in uptrends) or resistance (in downtrends), offering optimal entry points for traders.

4. RSI (Relative Strength Index) Momentum

RSI measures the momentum of price movement, ranging from 0 to 100. Readings above 70 can indicate overbought conditions, while below 30 suggests oversold. Watching for RSI to rebound from near 30 or pull back from near 70—especially when price interacts with key technical levels—can signal powerful trend moves or reversals.

How to Combine These Tools

1. Identify Market Structure: Confirm the current trend to align your trade direction.
2. Draw Trendlines: Mark dynamic support or resistance zones.
3. Apply Fibonacci Retracement: Focus on the 50%-60% OTE zone for potential entries.
4. Check RSI Momentum: Seek entry when RSI nears potential reversal zones in tandem with other signals.
5. Wait for Confluence: The highest probability trades emerge when several of these factors align.

Practical Example

Imagine an uptrend is in place. Price pulls back towards the OTE zone (between 50% and 60% Fibonacci retracement), touches the rising trendline, and RSI dips near 40 before turning up. This combined scenario often presents a compelling entry with strong risk/reward potential.

Key Takeaways for Green Red Candle Readers

• Prioritize trades where multiple technical signals overlap for improved accuracy.
• The 50%-60% OTE zone is a powerful area to watch for potential reversals or trend continuations.
• Always manage risk: place stop losses beyond major confluence levels.
• Refine and test these approaches on demo accounts before trading live.