Skip to main content

An Intelligent Utilization of Neural Networks for Improving the Traditional Technical Analysis in the Stock Markets

  • Conference paper

Part of the book series: Lecture Notes in Computer Science ((LNAI,volume 3681))

Abstract

The use of soft computing techniques such as neural networks and fuzzy engineering in the financial market has recently become one of the most exciting and promising application areas. In this paper, we propose a new decision support system (DSS) for dealing stocks which improves the traditional technical analysis by using neural networks. In the proposed system, neural networks are utilized in order to predict the “Golden Cross”(“Dead Cross”) several weeks before it occurs. Computer simulation results concerning the dealings of the Nikkei-225 confirm the effectiveness of the proposed DSS.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   109.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Rumelhart, D.E., et al.: Parallel Distributed Processing. MIT Press, Cambridge (1986)

    Google Scholar 

  2. Goldberg, D.E.: Genetic Algorithms in Search, Optimization & Machine Learning. Addison- Wesley, Reading (1989)

    MATH  Google Scholar 

  3. Refenes, A.P. (ed.): Neural Networks in the Capital Markets. Wiley, Chichester (1995)

    Google Scholar 

  4. Weigend, A.S., et al.: Decision Technologies for Financial Engineering. World Scientific, Singapore (1997)

    Google Scholar 

  5. Baba, N., Kozaki, M.: An intelligent forecasting system of stock price using neural network. In: Proceedings of IJCNN 1992, pp. 371–377 (1992)

    Google Scholar 

  6. Baba, N., et al.: A hybrid algorithm for finding the global minimum of error function of neural networks and its applications. Neural Networks 7, 1253–1265 (1994)

    Article  Google Scholar 

  7. Baba, N.: Construction of the decision support system for dealing stocks which utilizes neural networks. MTEC Journal 11, 3–41 (1998)

    Google Scholar 

  8. Baba, N., Suto, H.: Utilization of artificial neural networks and TD-Learning method for constructing intelligent decision support systems. European Journal of Operational Research 122, 501–508 (2000)

    Article  MATH  Google Scholar 

  9. Baba, N., et al.: Utilization of soft computing techniques for constructing reliable decision support system for dealing stocks. In: Proceedings of IJCNN 2002, pp. 2150–2155 (2002)

    Google Scholar 

  10. Baba, N., Kawachi, T.: A new trial for improving the traditional technical analysis in the stock markets. In: Negoita, M.G., Howlett, R.J., Jain, L.C. (eds.) KES 2004. LNCS (LNAI), vol. 3213, pp. 434–440. Springer, Heidelberg (2004)

    Chapter  Google Scholar 

  11. Zurada, J.M., et al.: Sensitivity analysis for minimization of joint data dimension for feedforward neural network. In: Proceedings of the IEEE International Symposium on Circuits and Systems, pp. 447–450 (1994)

    Google Scholar 

  12. Viktor, H.L., et al.: Reduction of symbolic rules from artificial neural network using sensitivity analysis. In: Proceedings of the IEEE International Symposium on Circuits and Systems, pp. 1788–1793 (1995)

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2005 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Baba, N., Nomura, T. (2005). An Intelligent Utilization of Neural Networks for Improving the Traditional Technical Analysis in the Stock Markets. In: Khosla, R., Howlett, R.J., Jain, L.C. (eds) Knowledge-Based Intelligent Information and Engineering Systems. KES 2005. Lecture Notes in Computer Science(), vol 3681. Springer, Berlin, Heidelberg. https://doi.org/10.1007/11552413_2

Download citation

  • DOI: https://doi.org/10.1007/11552413_2

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-28894-7

  • Online ISBN: 978-3-540-31983-2

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics