Trading Zone And Rul Top | Btmm Steve Mauro Part05

Trade setup at RUL:

Golden Rule of BTMM: Never enter a trade inside the Trading Zone. You are neither a buyer nor a seller here. You are an observer.

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. Trade setup at 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. Golden Rule of BTMM: Never enter a trade

Entry Logic: You do not trade inside the zone. You wait for the False Break and the return to the zone boundary.

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.