An improvement of the traditional technical analysis by using NNs

Abstract

The use of soft computing techniques such as neural networks and fuzzy engineering in the financial market has recently become one of the most exciting and promising application areas. In this paper, we propose a new decision support system (DSS) for dealing stocks which impropves the traditional technical analysis by using neural networks. In the proposed system, neural networks are utilized in order to predict the "Golden cross" ("Dead Cross") several weeks before it occurs.Computer simulation results concerning the dealings of the Nikkei-225 and several individual stocks confirm the effectiveness of the proposed DSS.