The midpoint of the Fair Value Gap. For a bullish FVG, C1 high (the candle before the displacement) is the lower boundary and C3 low (the candle after) is the upper boundary; the CE is equidistant from both. Worked example: C1 high = 1.0779, C3 low = 1.0793, zone width 14 pips → FVG CE = (1.0779 + 1.0793) ÷ 2 = 1.0786. The limit buy goes at 1.0786 — the primary entry price for Model 1, Model 2, and the 1st presented FVG, with the structural stop at C1 high minus 2–3 pips. The single most frequently calculated CE in daily session execution. TradingView: draw the FVG rectangle, add a dashed line at the CE, label it “FVG CE 1.0786”, set the limit at that price.
The midpoint of the Order Block — the high and low of the OB candle (the last opposing-direction candle before the impulse). Worked example: daily bullish OB with high = 1.0842, low = 1.0794, zone width 48 pips → OB CE = (1.0842 + 1.0794) ÷ 2 = 1.0818. Limit buy at 1.0818 for the swing entry from the daily OB, stop at the OB low minus 2–3 pips. The OB CE is the standard limit price for swing and position entries from daily or weekly OBs — a structurally better fill than the zone boundary. TradingView: mark the OB rectangle, dashed line at the CE, label “Daily OB CE 1.0818”.
Not a formula — the opening price of the 00:00 EST candle, serving as the daily dealing range equilibrium that divides the entire day into premium (above) and discount (below). Worked example: EUR/USD opens Monday 00:00 EST at 1.0812 → midnight CE = 1.0812. At 01:30 EST price is 1.0796 — below the CE, in daily discount. Bullish AMD confirmed: expect the SSL sweep, then Phase 3 delivery to the PDH above the CE. The most critical pre-session reference for daily AMD bias, redrawn every night at midnight. TradingView: dashed horizontal line at the 00:00 EST open, visible all day.
The midpoint of the Asian accumulation range, dividing London’s pre-AMD context into premium and discount and informing the likely Judas direction. Worked example: Asian high 1.0823, Asian low 1.0791 → Asian range CE = (1.0823 + 1.0791) ÷ 2 = 1.0807. At 02:00 EST price is 1.0798 — below the CE, in Asian-range discount: an SSL Judas at 1.0791 is the more likely sweep on a bullish AMD day. Price above the Asian CE at the open points to a BSL sweep instead. Adds a second confirmation layer to the midnight CE assessment. Marked once the Asian session closes at 02:00 EST.
The midpoint of the IPDA 20-, 40-, or 60-day data range, dividing the quarterly AMD into macro premium and macro discount. Worked example: IPDA 20-day high 1.1045, low 1.0612 → IPDA 20-day CE = (1.1045 + 1.0612) ÷ 2 = 1.0829. Price at 1.0786 is below it — quarterly institutional discount: with a bullish quarterly AMD, the highest-quality zone for swing and position longs targeting the IPDA 20-day high. Checked in the Sunday weekly review; recalculated as the rolling window advances. The macro permission layer above every session entry.
| Entry price | Entry location | Stop distance | RR (PDH 56 pips away) |
|---|---|---|---|
| Near boundary (C3 low) | Top of the zone — first contact. Worst entry in the zone: highest price paid, widest stop. | ~16 pips | 56 ÷ 16 = 3.5:1 |
| CE — FVG midpoint | 50% of the zone — maximum order density. Best standard entry: optimal price, precise stop. | ~9 pips | 56 ÷ 9 = 6.2:1 |
| 62% OTE level | 62% into the zone from the near boundary. High-precision deep entry — lower fill probability, higher RR if filled. | ~6 pips | 56 ÷ 6 = 9.3:1 |
| 79% OTE level | 79% deep — near structural invalidation. Deepest valid entry; very tight stop, lowest fill probability. Any close below the far boundary invalidates. | ~3 pips | 56 ÷ 3 = 18.7:1 |
Bullish AMD: price in premium before the Judas → expect a BSL sweep above the Asian high; after it, Phase 3 may continue higher — or the sweep completes the AMD and reverses bearishly from premium. Bearish AMD: premium is the ideal short context — the algorithm distributes from premium into discount, targeting the PDL. Entry preference: sell setups; cautious, reduced-confidence buys when in premium pre-Judas.
Bullish AMD: discount is the ideal long context — the Judas sweeps the SSL below the Asian low (the most common bullish pattern), the MSS forms, and Phase 3 delivers from discount to premium toward the PDH. Bearish AMD: discount pre-Judas → expect the SSL sweep, then further bearish delivery into deeper discount toward the PDL. Entry preference: buy setups at maximum quality — discount, post-Judas, from the 1st presented FVG CE.
| Dimension | CE (Consequent Encroachment) | OTE (Optimal Trade Entry) | When they coincide |
|---|---|---|---|
| What it measures | The 50% midpoint of a specific structural zone (FVG, OB, price range) | The 62–79% retracement depth of a prior expansion leg | A retracement reaching 62–79% of the leg that contains an FVG whose CE falls in that depth range |
| Calculation | (Zone high + zone low) ÷ 2 — a different formula per zone type | 62% = leg low + (range × 0.62); 79% = leg low + (range × 0.79) — Fibonacci-based | No separate calculation — compute the FVG CE, check whether it sits between the 62% and 79% levels |
| Primary use | The limit entry price within a known zone — most commonly the FVG CE as the Model 1/2 limit | Retracement-depth assessment when no FVG or OB defines the zone precisely | Both confirm the same level: zone precision (FVG CE) at maximum depth (OTE) |
| Structural stop | Zone far boundary minus 2–3 pips — zone-defined | Below the 79% level — zone-independent | The FVG far-boundary stop typically sits near the 79% level: double structural confirmation |
| When to prioritise | Whenever a clearly identified FVG or OB exists — the zone-defined CE beats an OTE estimate | When no zone defines the entry — OTE provides the depth guideline | Always enter from the FVG CE (the more precise reference); the OTE overlap adds confidence, not a different limit price |
The most common error: entering immediately on zone contact, 5–10 pips above the CE — a worse structural price with the same stop. In the 14-pip worked example the near-boundary entry produces 3.5:1 where the CE produces 6.2:1. There is no scenario in which the near boundary beats the CE given the same target and stop. Fix: the limit goes at the calculated CE price. The CE is the limit price; the near boundary is merely the zone contact price — different levels.
They are different references that sit 15–30 pips apart on a normal EUR/USD session. The midnight CE divides the whole daily range; the Asian CE divides only the accumulation range — and on days with a narrow Asian range far from the midnight open, substituting one for the other produces a wrong AMD bias. Fix: mark both, label both, use the midnight CE for daily bias and the Asian range CE for Judas direction.
The default daily candle may open at 17:00 EST or 00:00 UTC depending on settings — a 0–5 hour error that at normal EUR/USD volatility means a reference price 20–60 pips wrong. Fix: 1H or 15M chart, New York timezone, find the candle opening at exactly 00:00, mark its open. The only correct method.
The CE is the highest-probability reaction level in the zone — not a guarantee. Price can penetrate the CE and test the far boundary without invalidating anything: a wick to the far boundary with the close held inside the zone is a valid deep test. Fix: the stop lives at the far boundary minus 2–3 pips, never at the CE. Hold through CE penetrations; only a candle close beyond the far boundary triggers the structural stop.
The midnight CE resets at 00:00 EST every calendar day. A Monday line left standing is 1–5 days stale by Friday — potentially 30–80 pips from the current equilibrium on a volatile week, corrupting every premium/discount read after day one. Fix: redraw at 01:30 EST before each London session from the fresh 00:00 candle. Thirty seconds per day.
Lio has traded ICT and Smart Money Concepts on forex majors and US indices since 2021 and built LiquiditySweeps.com to teach the framework the way it should be learned: in sequence, on real charts, with free live tools instead of paid indicators. Every article on this site follows the same rule — nothing gets published that wouldn’t survive a trade review.
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