Btmm Steve Mauro Part05 Trading Zone And Rul Top Direct

In BTMM, price moves between accumulation (buying), manipulation (stop hunt), and distribution (selling). The Trading Zone is where retail traders should wait, not act impulsively.

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. btmm steve mauro part05 trading zone and rul top

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. Let’s walk through a short selling scenario using

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. The RUL: The "smaller high" formed between Low

The RUL: The "smaller high" formed between Low A and Low B acts as the Resistance Under the Low.

| Step | Action | |------|--------| | 1 | Identify RUL and RLL on higher timeframe (1H or 4H). | | 2 | Mark the Trading Zone (middle 60% of range). | | 3 | Wait for price to reach RUL or RLL. | | 4 | At RUL: Look for stop hunt above RUL, then reversal down. | | 5 | At RLL: Look for stop hunt below RLL, then reversal up. | | 6 | Enter only after price re-enters the Trading Zone from the extreme. | | 7 | Stop loss = just beyond the stop hunt wick. | | 8 | Target = opposite extreme (RUL → target RLL, or vice versa). |

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.