Stock Market Forecast using Technical Analysis
Many discuss if Stock Market Technical Analysis (SMTA) can be used to predict prices. Normally, there are two camps – the side who believes in SMTA predictability and other who does not. In many particular cases, both sides have a solid evidence to support their point of view.
From a statistical point of view it looks reasonable to search for a good predictability in the areas where random or multi-news driven fluctuations are self-compensating each other. One of such areas is stock market indexes, for example, S&P-500. This index consists of 500 biggest companies which make difficult to easily disrupt an equilibrium that is formed during relatively long time frames.
Indeed, as experiments show, one of the most consistent SMTA prediction ratios can be observed for S&P-500 index. Normally, the ratio of its successful/unsuccessful predictions is within the range of 60-68%. Average root-mean-square deviation of predicted-actual values during one week can fluctuate within 2-9 absolute values of index prices (Open, High, Low, Close prices).
Recently, Addaptron Software introduced a new service – Next Day S&P 500 Index Forecast The forecast is calculated using a multi-model SMTA forecast system. User can order the index forecast for the next day, i.e., candlestick values – Open, High, Low, Close prices. The forecast will be sent to your email address by automated tool.
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