Prediction of movement of prices

• Main Author: Teo, Jacky Heng Fatt
• Other Authors: Foo Say Wei
• Format: Final Year Project
• Language: English
• Published: 2015
• Subjects: DRNTU::Engineering::Electrical and electronic engineering
• Online Access: http://hdl.handle.net/10356/62156
• Institution: Nanyang Technological University

Technical analysis, also known as "charting," is part of financial practice that is used for many decades, but this field has not received the same level of academic scrutiny and acceptance as more traditional approaches such as fundamental analysis. One of the main obstacles of technical analysis is its highly subjective nature. The presence of 'patterns' are simply random effects, on which humans impose causation and humans see patterns that aren't there and then ascribe value to them. This final year project is an attempt to design and build a trading system with the best combination of technical indicators which includes MACD, RSI, Stochastic, Williams' %R, Price Rate of Change (PROC) and Chaikin oscillator to generate the best profits. The system encompasses a vast range of engineering fields which can be divided into two major categories: technical analysis and software. The technical analysis reads into how does each individual indicator works. The software, on the other hand, is responsible for combining the best indicators to provide the most profits for different categories of stocks. An in-depth study is done on how each indicator that is developed by mathematicians. Software development is accomplished using MATLAB, an innovative technical language of computing, for displaying the charts, indicators and results. This project looks at the technical analysis and system design with details of the technical indicators and their profitability. In addition, combination of different indicators on a particular counter will be analyzed. Finally, this project also looks at the problem in designing, its performance and then draws a conclusion.