EMITTER International Journal of Engineering Technology
Vol 10 No 2 (2022)

Technical Analysis Based Automatic Trading Prediction System for Stock Exchange using Support Vector Machine

I Made Akira Ivandio Agusta (Department of Informatics and Computer Engineering, Politeknik Elektronika Negeri Surabaya, Indonesia)
Aliridho Barakbah (Department of Informatics and Computer Engineering, Politeknik Elektronika Negeri Surabaya, Indonesia)
Arna Fariza (Department of Informatics and Computer Engineering, Politeknik Elektronika Negeri Surabaya, Indonesia)



Article Info

Publish Date
28 Dec 2022

Abstract

Stock exchange trading has been utilized to gain profit by constantly buying and selling best-performing stocks in a short term. Deep knowledge, time dedication, and experience are essential for optimizing profit if stock price fluctuations are analyzed manually. This research proposes a new trading prediction system that has the ability to automatically predict the accurate time for buying and selling stock using a combination of technical analysis and support vector machine (SVM). Technical analysis is used to analyze stock price fluctuation based on historical data by utilizing technical indicators such as moving average, Bollinger bands, relative strength index, stochastic oscillator, and Aroon oscillator. SVM maps inputs into higher dimensional spaces using non-linear kernel functions, making it suitable for various technical indicators implementation as inputs in stock trading prediction. Experimentation on five Indonesian stocks reveals that the combination of technical analysis and support vector machine is best suited for continuously fluctuated stocks, with the highest accuracy of 77.8%.

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Journal Info

Abbrev

EMITTER

Publisher

Subject

Computer Science & IT

Description

EMITTER International Journal of Engineering Technology is a BI-ANNUAL journal published by Politeknik Elektronika Negeri Surabaya (PENS). It aims to encourage initiatives, to share new ideas, and to publish high-quality articles in the field of engineering technology and available to everybody at ...