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STOCK MARKET PREDICTION :A SURVEY

Presented by Under the guidance of

Rajshekhar Patil Guru Prasad S
PG Student BMSIT Asst. Professor BMSIT
rjpatil058@gmail.com Bangalore.
Bangalore.
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outline
Abstract
Introdution
Stock market prediction analysis
 Literature Review
Conclusion
References
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Abstract
• Stock market is a widely used investment scheme promising high
returns but it has some risks.

• Stock market variation –demand & Supply strategy.

• An intelligent stock prediction model would be necessary.

• Stock market prediction is a act to forecast the future value of

the stock market.

• There are various techniques available for the prediction of the stock
market value .

• Few are: Neural Network (NN), Data Mining, Hidden

Markov Model (HMM), Neuro Fuzzy system etc.
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Introduction
• Stock market plays a vital role in the economic performance---
concludes particular nation.

• Prediction of stock markets –challenging task.

Because, its randomness in nature.

• Using only technical analysis is

Very difficult to anticipate.

• Researchers have made several attempts

to predict financial market values using
various techniques.

• Successful stock market prediction –

Achieve Best results
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PREDICTION ANALYSIS
• Analysis needed for access the knowledge to guide investors
in terms of when to buy or sell or hold the shares;

• Stock market prediction is mainly based on Two Analysis:

1.Fundamental Analysis:-

&

2. Technical Analysis:-
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Technical analysis:
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LITERATURE REVIEW:

• Phichhang Ou & Wang :

• Data mining to predicted stock market movements.

• Applied 10 different data mining techniques to anticipate price

variation of Hang Seng index of Hong Kong stock market.

• LS-SVM and SVM generate high ranking predictive performance.

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M Suresh babu & et al.

•Different Data mining to discover pattern and forecast the future trends
and behavior .

• Author proposed an algorithm to accommodate flexible and dynamic

pattern matching task in time series analysis.
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Continued…
• Binoy B Nair et al. they used hybrid decision tree &
neuro fuzzy system methods for forecasting the stock market.
they proposed auto-stock market trend anticipation system.

• They used two techniques such as

1.Technical analysis --feature extraction.
2.decision tree -- feature selection.

• dataset obtained by these two is fed as input, to train and test the
adaptive neuro- fuzzy system for next day stock prediction

• They tested their proposed system on 4 major international stock

market data.
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Fig: Block diagram of neuro-

fuzzy system.
Their experimental results clearly
showed that the proposed hybrid system
produces much higher accuracy when
compared to stand-alone decision tree
based system and Adaptive Neuro Fuzzy
Inference System (ANFIS).
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Md. Rafiul Hassan et al. deployed a fusion model by

combining HMM, NN and GA to anticipate financial market prediction.

• This model consist of two phases:

Phase 1: Optimizations of HMM.

Phase 2: Using weighted average method to

obtain the forecast.
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Fig : Block diagram for fusion model.

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• A.E Hassanien et al. proposed a generic rough set model

using the data set consisting of daily variations of a stock traded by
gulf-bank of Kuwait.

• Objective Modifying the existing rough set and build new model
that reduce the number of decision rules.

• They created an information table contains set of market indicator

like closing price, high price, low price, trade, value, average & roc
etc.

• These indicators acts as conditional attributes to predict stock price.

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Conclusion
 Although there are various techniques implemented for the
prediction of stock market.

 Here we surveyed some important stock market prediction

technique Such as Data mining, ANN,HMM, GA, Neuro Fuzzy
system and Rough set data model.

 This paper also highlights the fusion model by merging the HMM
Artificial NN and GA.

 These approaches are used to control and monitor the entire the
market price behavior as well as fluctuation.
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References
• S.Arun , Joe Babulo, B. Janaki, C. Jeeva, “Stock Market Indices Prediction
with Various Neural Network Models”, International Journal of Computer
Science and Mobile Applications, Vol. 2, Issue 3, .pp32-35 march 2014.

• http://www.learnartificialneuralnetworks.com/stockmarketprediction.ht
ml.

• Phichhang Ou and Hengshan Wang “Prediction of Stock Market Index

Movement by Ten Data Mining Techniques”, Canadian Center of Science
and Education, Vol. 3 no 12 December, 2009.

• M. Suresh babu, N.Geethanjali and B. Sathyanarayana, “Forecasting of

Indian Stock Market Index Using Data Mining & Artificial Neural Network”,
International journal of advance engineering & application, Vol. 3 Issue.4,
.pp 312-316 may 2011.

• Binoy B. Nair, N. Mohana Dharini, V.P. Mohandas, “A Stock Market Trend

Prediction System Using a Hybrid Decision Tree-Neuro-Fuzzy System”,
International Conference on Advances in Recent Technologies in
Communication and Computing on , .pp 381-385 June 2010.
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End of Presentation.