Combinatorial Impact of Technical Indicators on Price Prediction in Colombo Stock Market

Author(s):  
H. A. Caldera ◽  
W. P. A. Lavanya
Complexity ◽  
2019 ◽  
Vol 2019 ◽  
pp. 1-10 ◽  
Author(s):  
Hyun Sik Sim ◽  
Hae In Kim ◽  
Jae Joon Ahn

Stock market prediction is a challenging issue for investors. In this paper, we propose a stock price prediction model based on convolutional neural network (CNN) to validate the applicability of new learning methods in stock markets. When applying CNN, 9 technical indicators were chosen as predictors of the forecasting model, and the technical indicators were converted to images of the time series graph. For verifying the usefulness of deep learning for image recognition in stock markets, the predictive accuracies of the proposed model were compared to typical artificial neural network (ANN) model and support vector machine (SVM) model. From the experimental results, we can see that CNN can be a desirable choice for building stock prediction models. To examine the performance of the proposed method, an empirical study was performed using the S&P 500 index. This study addresses two critical issues regarding the use of CNN for stock price prediction: how to use CNN and how to optimize them.


Author(s):  
Jimmy Ming-Tai Wu ◽  
Zhongcui Li ◽  
Norbert Herencsar ◽  
Bay Vo ◽  
Jerry Chun-Wei Lin

AbstractIn today’s society, investment wealth management has become a mainstream of the contemporary era. Investment wealth management refers to the use of funds by investors to arrange funds reasonably, for example, savings, bank financial products, bonds, stocks, commodity spots, real estate, gold, art, and many others. Wealth management tools manage and assign families, individuals, enterprises, and institutions to achieve the purpose of increasing and maintaining value to accelerate asset growth. Among them, in investment and financial management, people’s favorite product of investment often stocks, because the stock market has great advantages and charm, especially compared with other investment methods. More and more scholars have developed methods of prediction from multiple angles for the stock market. According to the feature of financial time series and the task of price prediction, this article proposes a new framework structure to achieve a more accurate prediction of the stock price, which combines Convolution Neural Network (CNN) and Long–Short-Term Memory Neural Network (LSTM). This new method is aptly named stock sequence array convolutional LSTM (SACLSTM). It constructs a sequence array of historical data and its leading indicators (options and futures), and uses the array as the input image of the CNN framework, and extracts certain feature vectors through the convolutional layer and the layer of pooling, and as the input vector of LSTM, and takes ten stocks in U.S.A and Taiwan as the experimental data. Compared with previous methods, the prediction performance of the proposed algorithm in this article leads to better results when compared directly.


2019 ◽  
Vol 13 (9) ◽  
pp. 532-543
Author(s):  
Ameen Ahmed Oloduowo ◽  
Fashoto Stephen Gbenga ◽  
Ogeh Clement ◽  
Balogun Abdullateef ◽  
Mashwama Petros

2013 ◽  
Vol 17 (3/2013) ◽  
pp. 125-136 ◽  
Author(s):  
Magdalena Daniela NEMES ◽  
Alexandru BUTOI

2018 ◽  
Vol 2018 ◽  
pp. 1-12 ◽  
Author(s):  
Jian Wang ◽  
Junseok Kim

With the rapid development of the financial market, many professional traders use technical indicators to analyze the stock market. As one of these technical indicators, moving average convergence divergence (MACD) is widely applied by many investors. MACD is a momentum indicator derived from the exponential moving average (EMA) or exponentially weighted moving average (EWMA), which reacts more significantly to recent price changes than the simple moving average (SMA). Traders find the analysis of 12- and 26-day EMA very useful and insightful for determining buy-and-sell points. The purpose of this study is to develop an effective method for predicting the stock price trend. Typically, the traditional EMA is calculated using a fixed weight; however, in this study, we use a changing weight based on the historical volatility. We denote the historical volatility index as HVIX and the new MACD as MACD-HVIX. We test the stability of MACD-HVIX and compare it with that of MACD. Furthermore, the validity of the MACD-HVIX index is tested by using the trend recognition accuracy. We compare the accuracy between a MACD histogram and a MACD-HVIX histogram and find that the accuracy of using MACD-HVIX histogram is 55.55% higher than that of the MACD histogram when we use the buy-and-sell strategy. When we use the buy-and-hold strategy for 5 and 10 days, the prediction accuracy of MACD-HVIX is 33.33% and 12% higher than that of the traditional MACD strategy, respectively. We found that the new indicator is more stable. Therefore, the improved stock price forecasting model can predict the trend of stock prices and help investors augment their return in the stock market.


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