A column currently published on Toyo Keizai ONLINE will help you foresee future price movements.

Good morning, this is Matsushita.

Can you foresee future price movements?

This is a rather outrageous question,

of course, no one can see future price movements.

However, for a certain group of people in the market,

the future price movements can be seen,

and I am also one of those who can see future price movements.

This does not mean seeing a movement in exact one yen increments,

nor does it mean you can predict movements of a specific stock endlessly,

but rather you can image the general direction of price movement,

in a rough sense.

It is by no means 100% accurate, but

with a certain degree of accuracy, the movement can be reproduced as imagined

and profits can rise as a result.

Why can this be done?

Are these people endowed with special abilities?

These people do not possess any special abilities

at all,

they have simply learned price movement theories correctly.

Price movement theory includes Dow Theory, a trend recognition theory,

cycle theory that captures market turning points,

and learning technical indicators of trend-following and oscillator types

also falls under this category.

In other words, if you learn the theory correctly,

you can foresee future price movements with a certain probability.

In fact, until now, I have

dozens, even hundreds of times,

been asked, "You pick stocks that rise well,"

and people have been amazed.

There is nothing shocking about that, though.

Price movement theory is a probabilistically supported, organized theory.

Because it has probabilistic backing,

if you think according to the theory, a certain portion of movements

will move as the theory indicates.

Those who cannot see future price movements

have one of two reasons:

1. They have not learned price movement theory correctly

2. They do not understand or utilize the concept of probability

If you learn the price movement theory correctly

and understand and utilize the concept of probability,

you, too, will be able to see future price movements.

Naturally, profits will rise as well.

More than anything, investing becomes enjoyable.

Prices move exactly as you expect right before your eyes.

There is another meaning to learning this theory:

Stay calm, don't give up, and continue learning.