Automated Neural-ware System for Stock Market Prediction

Abstract

Abstract-This article uses neural networks in forecasting stock market prices. With their ability to discover patterns in nonlinear and chaotic systems, neural networks offer the ability to predict market directions more accuratcly than current techniques such as technical analysis, fundamental analysis, and regression comparcd with neural network performance. Proposed intclligcnt stock market prediction system is based on the Quantitative and Qualitativc factors. Three feedforward neural models can be used to analyze these factors. Input data to the neural network proposed are quantitative factors. Input data to the neural network proposcd for qualitative factors can be factors related to the political cffcct considered. Third neural network consists of decision integration in which input data will be the outputs of above-mentioned neural networks. This facilitates to make right decision whether stock market is influenced by quantitative or qualitative factors. I N T R O D U C T I O N A . Introduction f u r Neural-Ware System The Stock market is always one of the most popular investments due to its high profit. However, higher profit tends to higher risk too. Thus, various research works intended to develop models in order to provide the investors an optimum prediction. Among the traditional research, time series analysis techniques and multiple regression models were used. Recently due to the computational speed, Artificial NeuraI Networks (ANN) has been also used in this area. Through various models have been proposed, they only concentrated quantitative factors. However, in developing countries, like Sri Lanka, sometime non-quantitative factors are more important than qualitative factors. Therefore, proposed intelligent stock market prediction system intends the inclusion of both factors. Therefore, proposed intelligent stock market prediction system intends the inclusion of both factors such that right decision Intelligent stock market prediction is based on the systems integration. B. lnrelligent Stock Mcrrkst Prediction Related factors collection for the stock market environment. Factors Collection In order to make right decision, collecting the effective information regarding the predicted object is crucial

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