Btmm Steve Mauro Part05 Trading Zone And Rul Top

Steve Mauro teaches that once price breaks a significant low, it should stay below it. If price comes back up and stalls at the RUL, it confirms the Market Makers are selling/shorting into the retail traders who are buying the dip.

Here is how these two concepts work together in a real trade:

Scenario: Sell Setup (Distribution Phase)

The critical insight: The MM uses the RUL Top to trick retail into buying the breakout. Meanwhile, the smart money is selling into that liquidity.

In the previous parts of the BTMM methodology, we learned how to identify the Accumulation and Distribution phases, the Initial Balance, and the False Break of the High/Low (FBH/FBL). Part 05 introduces the two most critical elements for execution: The Trading Zone and the RUL Top. btmm steve mauro part05 trading zone and rul top

These concepts bridge the gap between "knowing where the market is going" and "knowing exactly when to pull the trigger."

The crown jewel of BTMM Steve Mauro Part05 is the RUL Top.

While most traders look for "tops" using Fibonacci extensions or round numbers, the RUL Top is a mechanical structure created by the Market Maker to trap late buyers and distribute shares before a reversal.

While the RUL Top signals a short opportunity, the Steve Mauro teaches that once price breaks a

Let’s walk through a short selling scenario using the RUL Top:

Step 1: Identify the Markup Phase Price has moved from the Trading Zone (Basin) up to a new high. You see a classic "Bump and Run" pattern.

Step 2: Wait for the "R" (Resistance Test) Price touches a major historical resistance level. It forms a long-wick rejection candle on the 1-hour or 4-hour chart. Do not sell yet.

Step 3: Confirm the "UL" (Underbelly & Liquidity) The next candle opens inside the wick of the rejection candle (The "U"). Immediately, price breaks below the low of the "U" candle (The "L"). This triggers a cascade of sell stops. The critical insight: The MM uses the RUL

Step 4: The Entry Your sell limit order is placed 2-3 pips below the Underbelly low. Your stop loss is placed 5-10 pips above the RUL Top's highest wick.

Step 5: The Target The target is not a random Fibonacci level. In BTMM Part 05, the target is the last Trading Zone before the markup began. The Market Maker must return to that zone to liquidate the remaining inventory.

To understand Zones and RUL Tops, you must first understand the cycle MMs follow:

Part 05 focuses on steps 1 and 2: Identifying the "Trading Zone" where the manipulation happens and the "RUL Top" which signals the start of the move.