• DocumentCode
    442250
  • Title

    Forecast studies for financial markets using technical analysis

  • Author

    Nagarajan, Vinit ; Wu, Ying ; Liu, Min ; Wang, Qing-Guo

  • Author_Institution
    Dept. of Electr. & Comput. Eng., National Univ. of Singapore, Singapore
  • Volume
    1
  • fYear
    2005
  • fDate
    26-29 June 2005
  • Firstpage
    259
  • Abstract
    The forecasting of the financial markets is an area of active research. Several methods have been studied with the aim of predicting future prices of financial instruments. In this paper, the use of technical analysis in forecasting and trading in the foreign exchange market is examined. Specifically, the application of neural networks in predicting future values of the US Dollar vs. British Pound is discussed. These predictions have been utilized in trading strategies and the returns obtained compared with those obtained using traditional technical indicators. The results show that neural networks are capable of predicting exchange rates with low values of mean square error. However, due to the high degree of complexity of the time series, it was not possible to obtain accurate enough predictions so as to generate consistent profits while trading.
  • Keywords
    finance; forecasting theory; foreign exchange trading; international trade; mean square error methods; neural nets; British Pound; US Dollar; financial instruments; financial market forecasting; foreign exchange market; mean square error; neural networks; price prediction; technical analysis; time series; Biological neural networks; Economic forecasting; Exchange rates; Input variables; Instruments; Macroeconomics; Mean square error methods; Microeconomics; Neural networks; Predictive models;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Control and Automation, 2005. ICCA '05. International Conference on
  • Print_ISBN
    0-7803-9137-3
  • Type

    conf

  • DOI
    10.1109/ICCA.2005.1528128
  • Filename
    1528128