Prophet Target is a term we use to describe how markets behave.
Have you ever notice that a market will make a move to a price level, then back off?
Then to see the market re-tests the same price level?
The market may back off a few points before it does this very often.
For example, in the SP500 ES. If you are long the market at 4760.00 and the price moves to 4765.00. Then it backs off to 4762.50. You may get scared or concerned about your entry price and bail on the trade. This is what we also call the San Fransisco Effect and what termed Legs Up.
In this example, you may go ahead and place your exit back or new the high of the move which was 4765.00 as your Prophet Target.
Entering the move: Lets say you want to get in on a move and the market already left you behind. It moves up to 4765.00. At this point, you may Wait To Enter model and hold your ground for your price. Now, it backs off to 4762.50. This could be your way in knowing about Prophet Target. The market could make the move back to the price level high of 4765.00 or more.
This type of entry is also called a RBBS Buy.
You won't see this price action on past charts, but during live trading, you will see this happens too often not to know about Prophet Target.
This type of price action helps you get comfortable with it and it fully describes the San Fransisco Effect that makes most traders uncomfortable.
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