Improving Trading Systems Using the RSI Financial Indicator and Neural Networks
Trading and Stock Behavioral Analysis Systems require efficient Artificial Intelligence techniques for analyzing Large Financial Datasets (LFD) and have become in the current economic landscape a significant challenge for multi-disciplinary research. Particularly, Trading-oriented Decision Support Systems based on the Chartist or Technical Analysis Relative Strength Indicator (RSI) have been published and used worldwide. However, its combination with Neural Networks as a branch of computational intelligence which can outperform previous results remain a relevant approach which has not deserved enough attention. In this paper, we present the Chartist Analysis Platform for Trading (CAST, in short) platform, a proof-of-concept architecture and implementation of a Trading Decision Support System based on the RSI and Feed-Forward Neural Networks (FFNN). CAST provides a set of relatively more accurate financial decisions yielded by the combination of Artificial Intelligence techniques to the RSI calculation and a more precise and improved upshot obtained from feed-forward algorithms application to stock value datasets.
KeywordsNeural Networks RSI Financial Indicator
Unable to display preview. Download preview PDF.
- 9.Edwards, R., Magee, J.: Technical analysis of stock trends, 7th edn. Amacom, New York (1997)Google Scholar
- 10.Malkiel, B.G.: A random walk down wall street. Norton & Co., New York (1995)Google Scholar
- 13.White, H.: Economic prediction using neural networks: The case of IBM daily stock returns. In: Proceedings of the 2nd Annual IEEE Conference on Neural Networks, II, pp. 451–458 (1988)Google Scholar
- 14.Kimoto, T., Asakawa, K., Yoda, M., Takeoka, M.: Stock market prediction system with modular neural network. In: Proceedings of the International Joint Conference on Neural Networks, San Diego, CA, pp. 1–6 (1990)Google Scholar
- 16.Aiken, M., Bsat, M.: Forecasting market trends with neural networks. Information Systems Management 6(4), 42–48 (1994)Google Scholar
- 19.Wilder Jr., J.W.: New Concepts in Technical Trading Systems. Hunter Publishing Company, Greensboro (1978)Google Scholar