“Trade the extremes, not the middle. RUL and RLL are your riddle. TOP is where trends are born, Wait for the hunt before you adorn.”
The strategy, developed by Steve Mauro, is a popular trading methodology that focuses on identifying the manipulative patterns of institutional "Market Makers" to align retail trades with their intended direction. Part 5 of this system specifically addresses the identification of Trading Zones and the RUL TOP (Rules for Top) formations. The BTMM Trading Zone
The aggressive upward move will abruptly stop, leaving a candlestick with a long upper wick (a pin). This indicates that the market maker has stopped hitting the bids and has absorbed all the buying volume. This structural high forms the of your Peak Formation High. Rule 3: The Reaction and Multi-Tranche Inducement
Steve Mauro 's strategy, Part 5 typically focuses on the Trading Zone and the rules for identifying "top" and "bottom" reversals. This part of the method is designed to help traders recognize when a market maker has completed a level and is preparing for a trend reversal. The Trading Zone btmm steve mauro part05 trading zone and rul top
: The classic double-top pattern where the dealer pushes price high into the Trading Zone, drops back to form an apex (neckline), and then pushes high a second time to trap late-stage buyers.
: Look for aggressive reversal signals at the top, such as "Railroad Tracks" (RRT), which represent a quick trap and reversal.
: One of the most critical rules is to trade the 2nd leg only . The second leg of the M-pattern should ideally be less extreme (lower) than the first leg. “Trade the extremes, not the middle
Every time you enter a trade based on a confirmed BTMM pattern—like a M/W pattern or a 50/50 analysis—you are accepting a specific level of Risk. This is calculated in your pre-trade plan, including your stop-loss placement and position size.
Look for an "M" formation (a double top). The second leg of the "M" should ideally be lower or equal to the first.
Trading Part 5 setups requires strict discipline. Do not trade in the middle of the daily range; wait exclusively for price to interact with the outer boundaries. Part 5 of this system specifically addresses the
The first peak is formed, followed by a sharp drop (the reaction).
Multiple candles rejecting the exact same high price point with long upper wicks.
Bruce “BTMM” (Beat The Market Mentor) Steve Mauro’s trading approach centers on systematic pattern recognition, volatility management, and disciplined execution; Part 05—often called the “Trading Zone and RUL Top” segment in his materials—focuses on where trades are taken, how risk is sized, and how tops are detected and managed. The following essay summarizes and explains those concepts, their rationale, and practical implementation for a discretionary or semi-systematic trader.
When price hits a structural high (the "Top") during a stop hunt, it must show immediate rejection. Market makers will not allow price to sustain closing candles above this level if they intend to drop the market. The Validation Checklist