Technical analysis

Context (archaeology)

Engineering

Stock (firearms)

Biology

Financial market

Stock market

Futures contract

Economics

Computer science

Trading strategy

Paleontology

Mechanical engineering

Econometrics

Artificial intelligence

Financial economics

Moving average

Deep learning

Finance

Artificial neural network

Convolutional neural network

Recurrent neural network

Machine learning

Computer vision

This work uses deep learning models for daily directional movements prediction of a stock price using financial news titles and technical indicators as input. A comparison is made between two different sets of technical indicators, set 1: Stochastic %K, Stochastic %D, Momentum, Rate of change, William's %R, Accumulation/Distribution (A/D) oscillator and Disparity 5; set 2: Exponential Moving Average, Moving Average Convergence-Divergence, Relative Strength Index, On Balance Volume and Bollinger Bands. Deep learning methods can detect and analyze complex patterns and interactions in the data allowing a more precise trading process. Experiments has shown that Convolutional Neural Network (CNN) can be better than Recurrent Neural Networks (RNN) on catching semantic from texts and RNN is better on catching the context information and modeling complex temporal characteristics for stock market forecasting. So, there are two models compared in this paper: a hybrid model composed by a CNN for the financial news and a Long Short-Term Memory (LSTM) for technical indicators, named as SI-RCNN; and a LSTM network only for technical indicators, named as I-RNN. The output of each model is used as input for a trading agent that buys stocks on the current day and sells the next day when the model predicts that the price is going up, otherwise the agent sells stocks on the current day and buys the next day. The proposed method shows a major role of financial news in stabilizing the results and almost no improvement when comparing different sets of technical indicators.

Deep Leaming for Stock Market Prediction Using Technical Indicators and Financial News Articles