Golden zone — Trading Glossary

The band between the 0.618 and 0.79 Fibonacci retracement levels, where a pullback inside a trend commonly pauses. A zone covering about 17% of the move, not an exact turning point.

0.706 is often drawn inside it, but it is a trader convention rather than a Fibonacci ratio. Entering on confirmation inside the zone — not on the first touch — is what keeps it from being a guess.

Also called: fib golden zone, optimal trade entry, ote.

Taught in

The Fibonacci Golden Zone (Honest Version)Strategy Playbook

How to draw the 0.618–0.79 zone, why it is a zone and not a prediction, the confirmation to wait for, the risk math, and when to walk away.

Also covered in that lesson

Fibonacci retracementA tool drawn from the swing low to the swing high of a move (or high to low) that marks how far a pullback has gone back, as a fraction of the move — 0.382, 0.5, 0.618, 0.786 and so on.Fair value gapA three-candle pattern left by a fast move, where the first candle's high and the third candle's low (in a rally) do not overlap. The empty range between them is the gap.