AB can retrace up to 78.6% of the XA leg - Condition satisfied BC can retrace between 38.2% – 88.6% of AB Condition satisfied CD can be an extension of 1.618% – 2.618% of AB Condition satisfied CD can also be an extension of up to 1.272% – 1.618% of XA leg Condition satisfied The point D is known as the PRZ or Potential Reversal Zone
Targets are determined as 0.382 and 0.618 Fibonacci retracement levels of the CD leg Ideally Stops losses are placed a below or above the high or low of point X.
Weekly Chart shows Bullish engulfing candlestick as well.