Hybrid Intelligent Systems for Stock Market Analysis

  • Ajith Abraham
  • Baikunth Nath
  • P. K. Mahanti
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 2074)


The use of intelligent systems for stock market predictions has been widely established. This paper deals with the application of hybridized soft computing techniques for automated stock market forecasting and trend analysis. We make use of a neural network for one day ahead stock forecasting and a neuro-fuzzy system for analyzing the trend of the predicted stock values. To demonstrate the proposed technique, we considered the popular Nasdaq-100 index of Nasdaq Stock MarketSM. We analyzed the 24 months stock data for Nasdaq-100 main index as well as six of the companies listed in the Nasdaq-100 index. Input data were preprocessed using principal component analysis and fed to an artificial neural network for stock forecasting. The predicted stock values are further fed to a neuro-fuzzy system to analyze the trend of the market. The forecasting and trend prediction results using the proposed hybrid system are promising and certainly warrant further research and analysis.


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Copyright information

© Springer-Verlag Berlin Heidelberg 2001

Authors and Affiliations

  • Ajith Abraham
    • 1
  • Baikunth Nath
    • 1
  • P. K. Mahanti
    • 2
  1. 1.School of Computing & Information TechnologyMonash University (Gippsland Campus)ChurchillAustralia
  2. 2.Department of Computer Science and EngineeringBirla Institute of TechnologyMesraIndia

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