Most traders, when they identify a demand zone, place their limit order at the top of the zone, the first level where the zone begins. It feels logical. But it's also where the stop hunts happen. DCE, Discount Candle Entry, solves this.
DCE places your entry at 38.2% of the zone's total depth, measured from the zone's extreme (the bottom for demand, the top for supply). This is the "discount" within the zone, below mid-point, ensuring you're buying at a genuinely good price relative to the zone's range.
"Entering at the top of a zone is where retail traders get stopped out. DCE puts you where institutions actually fill orders."
Enter at 1.2680 (zone top). Stop at 1.2665. Price sweeps down to 1.2667 before reversing. Stopped out. Price rallies 200 pips without you.
Enter at 1.2671 (38.2% into zone). Stop at 1.2659. Price sweeps to 1.2667, fills your limit, reverses. You ride the full move with a tighter stop and better R:R.
The 38.2% level is a Fibonacci retracement level that consistently marks institutional order clusters within zones. It's not arbitrary. It reflects where large players place scaled orders, deep enough in the zone to survive the sweep, shallow enough to benefit from a strong reaction.