Skip to main content

Stock Market Prediction Using Deep Learning Algorithm: An Overview

  • Conference paper
  • First Online:
International Conference on Innovative Computing and Communications

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 471))

Abstract

A stock market, sometimes referred to as an equity market, is a gathering of buyers and sellers of stocks that represent company ownership. In this market, various investors sell and acquire shares based on stock availability. Stock trading is an important practice in the world of finance, and it is the cornerstone of many enterprises. A developing country’s rapid economic development, such as India’s, is dependent on its stock market. It is crucial in today’s economic and social environment. The stock market’s ups and downs have an impact on stakeholders’ benefits. Stock market value prediction has long captivated the interest of investors and researchers because of its complexity, inherent ambiguity, and ever-changing nature. “Stock market prediction” is a method of trying to anticipate the worth of a given “stock” in the coming days. This is performed by considering historical stock values as well as price variances throughout the previous days. Due to market volatility, forecasting stock indices is definitely tough, necessitating an accurate forecast model. Recent advancement in stock market prediction technology is machine learning, which produces forecasts based on the values of current stock market indices by training on their prior values. The term “machine learning” (ML) refers to a subdivision of “artificial intelligence” (AI) in which we train machines with data and use test data to forecast the future. This study presents an overview of deep learning techniques that are currently being used to anticipate stock market movements and predictions.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Fama EF (1965) The behavior of stock market prices. J Bus 2(2):7–26

    Google Scholar 

  2. Das AP (2008) Security analysis and portfolio management, 3rd edn. I.K. International Publication

    Google Scholar 

  3. Heaton JB, Polson NG, Witte JH (2017) Deep learning for finance: deep portfolios. Appl Stochastic Models Bus Ind 33(1):3–12

    Article  MathSciNet  Google Scholar 

  4. Takeuchi L, Lee YYA (2013) Applying deep learning to enhance momentum trading strategies in stocks. In: Technical report. Retrieved from website: http://cs229.stanford.edu/proj2013/TakeuchiLee-ApplyingDeepLearningToEnhanceMomentumTradingStrategiesInStocks.pdf

  5. Batres-Estrada B (2014) Deep learning for multivariate financial time series. Royal Institute of Technology, School of Engineering Sciences, Sweden, 2014 Retrieved from http://www.diva-portal.org/smash/get/diva2:820891/FULLTEXT01.pdf

  6. Fehrer R, Feuerriegel S (2015) Improving decision analytics with deep learning: the case of financial disclosures. arXiv:1508.01993. Retrieved from https://arxiv.org/pdf/1508.01993.pdf 

  7. Sharang A, Rao C (2015) Using machine learning for medium frequency derivative portfolio trading. Retrieved from https://arxiv.org/pdf/1512.06228.pdf

  8. Ding X, Zhang Y, Liu T, Duan J (2015) Deep learning for event-driven stock prediction. In: Proceedings of the IJCAI, pp 2327–2333

    Google Scholar 

  9. Sirignano J (2016) Deep learning for limit order books. Retrieved from https://arxiv.org/pdf/1601.01987.pdf

  10. Dixon MF, Klabjan D, Bang JH (2016) Classification-based financial mar-kets prediction using deep neural networks. Retrieved from https://arxiv.org/pdf/1603.08604.pdf

  11. Zhu C, Yin J, Li Q (2014) A stock decision support system based on DBNs. J Comput Inf Syst 10(2):883–893

    Google Scholar 

  12. Rönnqvist S, Sarlin P (2017) Bank distress in the news: describing events through deep learning. Neurocomputing 264(11):57–70

    Article  Google Scholar 

  13. Xiong R, Nicholas EP, Shen Y (2018) Deep learning stock volatilities with google do- mestic trends. arXiv:1512.04916 https://arxiv.org/pdf/1512.04916.pdf

  14. Kumar MK, Parameshachari BD, Prabu S, Ullo SL (2020) Comparative analysis to identify efficient technique for interfacing BCI system. In: Proceedings of the IOP Conference Series: Materials Science and Engineering. IOP Publishing, p 925

    Google Scholar 

  15. Jia H (2016) Investigation into the effectiveness of long short term memory networks for stock price prediction. arXiv preprint arXiv: 1603.07893

    Google Scholar 

  16. Guresen E, Kayakutlu G, Daim TU (2011) Using artificial neural network models in stock market index prediction. Expert Syst Appl 38(8):10389–10397

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Pragati Raj .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2023 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Raj, P., Ashu Mehta, Singh, B. (2023). Stock Market Prediction Using Deep Learning Algorithm: An Overview. In: Gupta, D., Khanna, A., Bhattacharyya, S., Hassanien, A.E., Anand, S., Jaiswal, A. (eds) International Conference on Innovative Computing and Communications. Lecture Notes in Networks and Systems, vol 471. Springer, Singapore. https://doi.org/10.1007/978-981-19-2535-1_25

Download citation

  • DOI: https://doi.org/10.1007/978-981-19-2535-1_25

  • Published:

  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-19-2534-4

  • Online ISBN: 978-981-19-2535-1

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics