Using the London or New York open to catch the reversal at the extremes. ✅ What’s Good Clear Boundaries:

Look for long-wick rejections, such as Railroad Tracks, Pin Bars, or Star formations at the extreme high or low.

: Price must move away from the PF and confirm the formation with a candlestick pattern (e.g., Railroad Tracks, Evening Star).

A "Rule Top" or Peak Formation High (PFH) is the extreme point where Market Makers trap long traders before reversing the price downward.

The first peak is formed, followed by a sharp drop (the reaction).

| Phase | Action | Key Indicator | RUL Status | | :--- | :--- | :--- | :--- | | | Identify Peak Formation (PF). | Market Structure. | Neutral/Low. | | 2. Zone | Price retraces into the Trading Zone. | Asian Range. | Stable. | | 3. Trap | Stop Hunt occurs, taking out PF. | Price Action (Fakeout). | Rises as breakout traders incur losses. | | 4. Execute | Price reverses; enter on confirmation. | Confirmation Candle (Doji/Hammer). | RUL reaches a peak ('The RUL Top'). | | 5. Target | Ride the move to the ADR or next structure level. | ADR/Target Level. | RUL declines as the move becomes profitable. |

The (sometimes referred to as a "W" bottom, but in the context of reversing a "top" of a market cycle) is a high-probability reversal setup. It is a specific pattern that occurs after a long uptrend (or the final leg of an uptrend), marking the "3rd level" peak. Anatomy of a RUL Top Setup

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.