The stops you from chasing price. It forces you to wait for the Market Maker to return to your entry price. The RUL Top stops you from holding too long. It gives you a mechanical algorithm to exit long positions and initiate short positions at the exact moment the Institutional Order Flow reverses.
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.
In , the focus shifts from what the market is doing to where you should stand. This article dissects the two most critical concepts in Part 05: The Trading Zone and The RUL Top . Without these, you are trading random price swings. With them, you trade like an Insider. The "No-Trade" Zone vs. The Trading Zone Before we discuss the RUL Top , we must redefine your understanding of where profit lives. btmm steve mauro part05 trading zone and rul top
Price has moved from the Trading Zone (Basin) up to a new high. You see a classic "Bump and Run" pattern.
Practice identifying the "Underbelly" (U) structure on daily charts. Once you can spot the transition from "R" to "U" to "L" without indicators, you have officially graduated from retail trader to BTMM practitioner. Disclaimer: This article is for educational purposes based on the BTMM methodology by Steve Mauro. Trading financial markets involves risk. Past performance does not guarantee future results. The stops you from chasing price
If you have followed the BTMM (Beat The Market Maker) methodology from Steve Mauro through Parts 01 to 04, you have already mastered the basics of Liquidity Grabs , Market Structure Shifts , and the Wyckoff Distribution Schematics . You understand how to identify the Piggybank , the Spring , and the Upthrust After Distribution .
But Part 05 is where the theory ends and the real execution begins. It gives you a mechanical algorithm to exit
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.