CAST: Using neural networks to improve trading systems based on technical analysis by means of the RSI financial indicator

Abstract

a b s t r a c tStock price predictions have been a field of study from several points of view including, among others, artificial intelligence and expert systems. For short term predictions, the technical indicator relative strength indicator (RSI) has been published in many papers and used worldwide.CAST is presented in this paper. CAST can be seen as a set of solutions for calculating the RSI using arti ficial intelligence techniques. The improvement is based on the use of feedforward neural networks to calculate the RSI in a more accurate way, which we call the iRSI. This new tool will be used in two sce narios. In the first, it will predict a market in our case, the Spanish IBEX 35 stock market. In the second, it will predict single company values pertaining to the IBEX 35. The results are very encouraging and reveal that the CAST can predict the given market as a whole along with individual stock pertaining to the IBEX 35 index.

Intelligent Stock Market Analysis System - A Fundamental and Macro-economical Analysis Approach

“…A technical analysis [1]- [3] applied to stock market data implies the use of mathematical equations (indicators and oscillators) that determine the stock's evolution on a particular period of time, trigger buy/sell signals based on some imposed boundaries, determine the market status and possible future behavior on a short period of time and trigger entry/exit points.…”

FAST: Fundamental Analysis Support for Financial Statements. Using semantics for trading recommendations

“…Taking full advantage of these technologies, FAST allows the generation of investments for a set of companies, using some financial information stored in an ontology format. The development of the system is based in the reutilization and the improvement of SONAR (Gomez et al 2009) bringing a complementary approach to CAST (Rodríguez-González et al 2011). Therefore, the ontology developed in SONAR has been used for the storage of the financial information necessary to execute part of the system.…”

EPSO-GHSOM Stock Selecting and Trading Strategy on Big Data

“…Recent research employs semi-structured and unstructured data from the Internet and social media. Table 1 identifies research concerning prediction and trading strategies [2,[6][7][8][9][10][11][14][15][16][17][18][19][20][21][22][23][24]. Table 1.…”

“…Previous research combines artificial intelligence and technical analysis in models to forecast market trends, trading rules, and buy-sell signals. Their methods included genetic programming [6], k-nearest neighbor algorithms [2], neural networks [7][8][9][10][11][12][13], genetic algorithms [14], and particle swarm optimization (PSO) [15] to construct trading models based on technical indicators.…”