Discount and premium tell you which half to trade from. The Optimal Trade Entry (OTE) narrows it to a sweet spot.
The OTE zone is the 0.62–0.79 retracement of the leg — deep in discount for longs, deep in premium for shorts. Entering here does two things: it gives you the best price (so your stop is tight and your R is large), and it lines up with where institutional retracements often reverse.
The magic is the overlap. OTE on its own is just a fib zone. But when your order block and your fair value gap and the OTE zone all land in the same little pocket, you have several independent reasons for the entry — a genuine confluence stack. The fib isn't the signal; it's the confirmation that your POI sits where it should.
A caution. Fibs are a tool, not a religion. Price doesn't owe you a bounce at 0.705. Use the OTE to rank entries — a POI in the OTE beats the same POI at a shallow retrace — not to force trades that the structure and liquidity don't support. Premium/discount is a filter that makes your good setups better and your marginal ones honest.