What it means
Deep entries keep stops small and targets large, but not every pullback reaches OTE.
Example
A leg from 100 to 110 has its 70.5% retracement at 102.95.
In practice
The optimal trade entry is a pullback entry with defined edges. After an impulse, traders draw a retracement over the leg and wait for price to come back into the 62% to 79% area before entering in the direction of the impulse.
A deep entry puts the stop, just beyond the start of the leg, close by, so the same target is worth several times the risk.
What to watch for
Strong moves often turn at shallower levels and never reach the zone. A pullback that deep is also close to breaking the low it started from, so the zone works best when it overlaps an order block or a fair value gap.