Predicting Stock Market Trends of Iran Using Elliott Wave Oscillation and Relative Strength Index

Objective: Elliott wave theory is one of the tools of technical analysis based on the psychology of individuals; which in recent years has become an important tool for analysts and investors. This theory exists in all financial markets, especially the stock market, which is widely welcomed and popul...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Samira Seif, Babak Jamshidinavid, Mehrdad Ghanbari, Mansour Esmaeilpour
Formato:	article
Lenguaje:	FA
Publicado:	University of Tehran 2021
Materias:	predict trend technical analysis elliott wave theory classification algorithms Finance HG1-9999
Acceso en línea:	https://doaj.org/article/e3ae93d4d7f040feb0225c84a78af6f7
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:e3ae93d4d7f040feb0225c84a78af6f7
record_format	dspace
spelling	oai:doaj.org-article:e3ae93d4d7f040feb0225c84a78af6f72021-11-14T06:00:49ZPredicting Stock Market Trends of Iran Using Elliott Wave Oscillation and Relative Strength Index1024-81532423-537710.22059/frj.2020.310664.1007072https://doaj.org/article/e3ae93d4d7f040feb0225c84a78af6f72021-05-01T00:00:00Zhttps://jfr.ut.ac.ir/article_82176_5f3cef510eeb3e7563953c8ca1d531d4.pdfhttps://doaj.org/toc/1024-8153https://doaj.org/toc/2423-5377Objective: Elliott wave theory is one of the tools of technical analysis based on the psychology of individuals; which in recent years has become an important tool for analysts and investors. This theory exists in all financial markets, especially the stock market, which is widely welcomed and popular. Based on this theory, this study seeks to determine the future trend of the Iranian stock market through Elliott wave oscillators and machine learning algorithms supervised and classification. Methods: Total index data from 2008-05-14 to 2020-11-25 were reviewed daily and Elliott wave patterns were identified using the Elliott wave oscillator and relative motion strength index and labeled into three categories: LONG, SHORT, and HOLD. Machine learning algorithms include Decision tree, Naive Bayes, Support vector machine to repeat these learning patterns, then tested on test data. Results: The results showed that in the Tehran Stock Exchange index, identifiable Elliott waves and Support vector machine and Decision tree algorithms are able to predict the future trend of the total index with an accuracy of over 90 percent. Conclusion: In the Iranian capital market, the chart of the Elliott Behavior Index is observed and all active persons in the Tehran Stock Exchange can use the proposed method for their trading system.Samira SeifBabak JamshidinavidMehrdad GhanbariMansour EsmaeilpourUniversity of Tehranarticlepredict trendtechnical analysiselliott wave theoryclassification algorithmsFinanceHG1-9999FAتحقیقات مالی, Vol 23, Iss 1, Pp 134-157 (2021)
institution	DOAJ
collection	DOAJ
language	FA
topic	predict trend technical analysis elliott wave theory classification algorithms Finance HG1-9999
spellingShingle	predict trend technical analysis elliott wave theory classification algorithms Finance HG1-9999 Samira Seif Babak Jamshidinavid Mehrdad Ghanbari Mansour Esmaeilpour Predicting Stock Market Trends of Iran Using Elliott Wave Oscillation and Relative Strength Index
description	Objective: Elliott wave theory is one of the tools of technical analysis based on the psychology of individuals; which in recent years has become an important tool for analysts and investors. This theory exists in all financial markets, especially the stock market, which is widely welcomed and popular. Based on this theory, this study seeks to determine the future trend of the Iranian stock market through Elliott wave oscillators and machine learning algorithms supervised and classification. Methods: Total index data from 2008-05-14 to 2020-11-25 were reviewed daily and Elliott wave patterns were identified using the Elliott wave oscillator and relative motion strength index and labeled into three categories: LONG, SHORT, and HOLD. Machine learning algorithms include Decision tree, Naive Bayes, Support vector machine to repeat these learning patterns, then tested on test data. Results: The results showed that in the Tehran Stock Exchange index, identifiable Elliott waves and Support vector machine and Decision tree algorithms are able to predict the future trend of the total index with an accuracy of over 90 percent. Conclusion: In the Iranian capital market, the chart of the Elliott Behavior Index is observed and all active persons in the Tehran Stock Exchange can use the proposed method for their trading system.
format	article
author	Samira Seif Babak Jamshidinavid Mehrdad Ghanbari Mansour Esmaeilpour
author_facet	Samira Seif Babak Jamshidinavid Mehrdad Ghanbari Mansour Esmaeilpour
author_sort	Samira Seif
title	Predicting Stock Market Trends of Iran Using Elliott Wave Oscillation and Relative Strength Index
title_short	Predicting Stock Market Trends of Iran Using Elliott Wave Oscillation and Relative Strength Index
title_full	Predicting Stock Market Trends of Iran Using Elliott Wave Oscillation and Relative Strength Index
title_fullStr	Predicting Stock Market Trends of Iran Using Elliott Wave Oscillation and Relative Strength Index
title_full_unstemmed	Predicting Stock Market Trends of Iran Using Elliott Wave Oscillation and Relative Strength Index
title_sort	predicting stock market trends of iran using elliott wave oscillation and relative strength index
publisher	University of Tehran
publishDate	2021
url	https://doaj.org/article/e3ae93d4d7f040feb0225c84a78af6f7
work_keys_str_mv	AT samiraseif predictingstockmarkettrendsofiranusingelliottwaveoscillationandrelativestrengthindex AT babakjamshidinavid predictingstockmarkettrendsofiranusingelliottwaveoscillationandrelativestrengthindex AT mehrdadghanbari predictingstockmarkettrendsofiranusingelliottwaveoscillationandrelativestrengthindex AT mansouresmaeilpour predictingstockmarkettrendsofiranusingelliottwaveoscillationandrelativestrengthindex
_version_	1718429929567158272

Predicting Stock Market Trends of Iran Using Elliott Wave Oscillation and Relative Strength Index

Ejemplares similares