Fuzzy Forecasting Based on Two-Factors Second-Order Fuzzy-Trend Logical Relationship Groups and Particle Swarm Optimization Techniques

In this paper, we present a new method for fuzzy forecasting based on two-factors second-order fuzzy-trend logical relationship groups and particle swarm optimization (PSO) techniques. First, we fuzzify the historical training data of the main factor and the secondary factor, respectively, to form two-factors second-order fuzzy logical relationships. Then, we group the two-factors second-order fuzzy logical relationships into two-factors second-order fuzzy-trend logical relationship groups. Then, we obtain the optimal weighting vector for each fuzzy-trend logical relationship group by using PSO techniques to perform the forecasting. We also apply the proposed method to forecast the Taiwan Stock Exchange Capitalization Weighted Stock Index and the NTD/USD exchange rates. The experimental results show that the proposed method gets better forecasting performance than the existing methods.