Anyone who follows me can see that I am a student of Wyckoff, and this setup is (in my opinion), an ideal secondary test ( ST ) entry. We have a selling climax ( SC ), followed by an automatic reversal (AR), then a secondary test ( ST ). Now anyone who has read Wyckoff knows that he didn't favor these types of setups, because he preferred to speculate during the mark up and mark down phases, not during the accumulation and distribution phases. Why? Because there is always the chance that the bounce is short lived and the downtrend continues or we trade in a nowhere trading range for an extended period of time. Who am I to argue with this legendary trader. So to keep this in mind, these trades can offer some of the very best R:R ratios available, but we as traders have to be quick to get out if they don't go our way immediately, but when they work they can be very fast and large. So in this trade I would scalp 1/2 to 3/4 of my position at the most recent swing high, and leave a runner for the other two targets. Keep in mind that we could see another test of the lows in the form of a spring, but with the very large and gap down on 2/12/15, plus we are sitting on the bottom of the lower , I think that this "could" be a very explosive move up to the top of the upper line if a short squeeze occurs (if the sellers rush to cover their shorts in large numbers adding to the upward ). Good trading.