Classification and Prediction of Stock Market Index Based on Fuzzy Metagraph

Abstract

Stock market price forecasting is one of the challenging tasks due to the difficulty in predicting the non-linear and non-stationary time series data. In this paper a Fuzzy Metagraph (FM) based stock market decision making, classification and prediction are proposed for short term investors of Indian stock market. Simple Moving Average (SMA), Exponential Moving Average (EMA), Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) are some of the Technical Indicators which are used as input to train the system which is integrated with Fuzzy Metagraph. This approach of incorporating FM with SMA, MACD and RSI would be a new attempt in classification and prediction on share market investment. Stocks listed in Bombay Stock Exchange (BSE) in India are used to evaluate the performance of the system. The results obtained from the proposed FM based model are found to be satisfactory with very low risk error.