Stock market forecasting using artificial neural networks

Abstract

Forecasting events has always been of great interest for human beings. The basic examples of this process are forecasting the weather and environmental disasters. To forecast is the process of collecting information in order to complete and expand them suitably for future. Today, globalization of economic and competes in this regard for observing investors and recognition of profit making and trusting markets, such as currency and stock market, which are highly complex, is now one of the most important umbrages of investors. For forecasting in capital markets such as stock or currency, there exist different methods, like, regression, time series, genetics algorithm and fundamental analysis. From non-liner methods which might be used in different forecasting bases are Artificial Neural Networks ANN. ANN are one of the newest inventions of mankind which are used in variety of different scientific fields. Use of investors of technology and computer algorithms for forecasting has caused more profit and better business opportunities. ANN is a part of dynamic systems which by processing on data of time series, drive the roles and science of these data and register it with the structure of the network. This system is based on computational intelligence which copies the human’s mind feature in processing. In this survey, besides discussing the ANN for analyzing and processing data and also studying new methods, it is concluded that ANN are an appropriate model for forecasting capital markets such as stock and currency.