Enhancing stock market trend reversal prediction using feature-enriched neural networks
According to several previous studies, neural network-based stock price predictors perform better for plunging patterns of stock prices than normal stock price patterns. Focusing on this issue, this study proposes a novel method that uses a neural network-based stock price predictor to predict the u...
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| Format: | Article |
| Language: | English |
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Elsevier
2024-01-01
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| Series: | Heliyon |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844024001671 |
| _version_ | 1797328768796196864 |
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| author | Yoojeong Song |
| author_facet | Yoojeong Song |
| author_sort | Yoojeong Song |
| collection | DOAJ |
| description | According to several previous studies, neural network-based stock price predictors perform better for plunging patterns of stock prices than normal stock price patterns. Focusing on this issue, this study proposes a novel method that uses a neural network-based stock price predictor to predict the upward trend-reversal of the plunging market itself. To achieve more consistent prediction results for plunging patterns, newly designed input features are added to improve the performance of traditionally used neural network-based predictors. The statistics of the prediction scores for past plunging markets and analyzed, and the results are used to predict the upward trend-reversal in the plunging market that occurred during the test period. We demonstrate the superiority of the proposed method through the simulation results of 3-year trading on KOSDAQ, a representative stock market in South Korea. |
| first_indexed | 2024-03-08T06:56:22Z |
| format | Article |
| id | doaj.art-de9f088588374c70986ae4389d5b4bb0 |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-03-08T06:56:22Z |
| publishDate | 2024-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-de9f088588374c70986ae4389d5b4bb02024-02-03T06:36:19ZengElsevierHeliyon2405-84402024-01-01102e24136Enhancing stock market trend reversal prediction using feature-enriched neural networksYoojeong Song0School of Computer Science, Semyung University, 65 Semyung-ro, Jecheon-si, 27136, Chungcheongbuk-do, Republic of KoreaAccording to several previous studies, neural network-based stock price predictors perform better for plunging patterns of stock prices than normal stock price patterns. Focusing on this issue, this study proposes a novel method that uses a neural network-based stock price predictor to predict the upward trend-reversal of the plunging market itself. To achieve more consistent prediction results for plunging patterns, newly designed input features are added to improve the performance of traditionally used neural network-based predictors. The statistics of the prediction scores for past plunging markets and analyzed, and the results are used to predict the upward trend-reversal in the plunging market that occurred during the test period. We demonstrate the superiority of the proposed method through the simulation results of 3-year trading on KOSDAQ, a representative stock market in South Korea.http://www.sciencedirect.com/science/article/pii/S2405844024001671Plunging patternPlunge marketStock price predictionNeural networkTrend reversal |
| spellingShingle | Yoojeong Song Enhancing stock market trend reversal prediction using feature-enriched neural networks Heliyon Plunging pattern Plunge market Stock price prediction Neural network Trend reversal |
| title | Enhancing stock market trend reversal prediction using feature-enriched neural networks |
| title_full | Enhancing stock market trend reversal prediction using feature-enriched neural networks |
| title_fullStr | Enhancing stock market trend reversal prediction using feature-enriched neural networks |
| title_full_unstemmed | Enhancing stock market trend reversal prediction using feature-enriched neural networks |
| title_short | Enhancing stock market trend reversal prediction using feature-enriched neural networks |
| title_sort | enhancing stock market trend reversal prediction using feature enriched neural networks |
| topic | Plunging pattern Plunge market Stock price prediction Neural network Trend reversal |
| url | http://www.sciencedirect.com/science/article/pii/S2405844024001671 |
| work_keys_str_mv | AT yoojeongsong enhancingstockmarkettrendreversalpredictionusingfeatureenrichedneuralnetworks |