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Trading Strategy on Market Stock by Analyzing Candlestick Pattern using Artificial Neural Network (ANN) Method Ni Putu Winda Ardiyanti; Irma Palupi; Indwiarti Indwiarti
JURNAL MEDIA INFORMATIKA BUDIDARMA Vol 5, No 4 (2021): Oktober 2021
Publisher : STMIK Budi Darma

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30865/mib.v5i4.3266

Abstract

Technical analysis plays an important role in a stock market. Traders using technical analysis to find the trading strategy on the market stock. There are some technical indicators tools that can support the technical analysis, such as Moving Average, Stochastic, and others. Candlestick pattern also parts of the tools that used in technical analysis to develop the trading strategy since Candlestick represents the stock behavior. Therefore, understanding the Candlestick pattern and technical indicator tools will be valuable for the traders to predict the trading strategy. This study performs the prediction of trading strategy by analyzing the Candlestick pattern using an Artificial Neural Network (ANN). The technical indicator tools and Candlestick pattern will be generated as the features and label data in the modeling process. The method is applied to four stocks from IDX through their technical indicators for a certain period of time. We find that in the period of 28 days, the model generates the highest accuracy that reached 85.96%. We also used K-Fold Cross-Validation to evaluate the result of model performance that generates