Proceedings of the EAI 3rd International Conference on Intelligent Systems and Machine Learning, ICISML 2024, January 5-6, 2024, Pune, India

Research Article

Stock Market Predictions Using Moving Average and LSTM Techniques

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  • @INPROCEEDINGS{10.4108/eai.5-1-2024.2342607,
        author={Nareshsarathy  S and Aadhya  Enllawar},
        title={Stock Market Predictions Using Moving Average and LSTM Techniques},
        proceedings={Proceedings of the EAI 3rd International Conference on Intelligent Systems and Machine Learning, ICISML 2024, January 5-6, 2024, Pune, India},
        publisher={EAI},
        proceedings_a={ICISML},
        year={2024},
        month={8},
        keywords={financial forecasting technical analysis volatility machine learning data preprocessing moving average lstm (long short-term memory) deep learning and stock market prediction},
        doi={10.4108/eai.5-1-2024.2342607}
    }
    
  • Nareshsarathy S
    Aadhya Enllawar
    Year: 2024
    Stock Market Predictions Using Moving Average and LSTM Techniques
    ICISML
    EAI
    DOI: 10.4108/eai.5-1-2024.2342607
Nareshsarathy S1,*, Aadhya Enllawar1
  • 1: VIT-AP University, Amaravati, Andhra Pradesh, India
*Contact email: snareshsarathy@gmail.com

Abstract

This research aims to predict stock market movements by combining Long Short-Term Memory (LSTM) deep learning with moving average analysis. The goal is to create a reliable model for forecasting stock prices by leveraging historical data. Due to the stock market's complexity and volatility, specialized methods are needed to capture patterns accurately. Moving average indicators are used to identify trends and reduce price fluctuations. The model effectively analyzes time-series data, capturing long-term relationships in stock prices using LSTM, a type of recurrent neural network. LSTM allows the model to learn from extensive historical data, crucial for handling large-scale stock market datasets spanning years. Performance is assessed using measures like mean squared error and accuracy, and the model's predictions are rigorously compared to actual stock prices. The research demonstrates the effectiveness of this strategy, providing valuable insights for traders and investors in the unpredictable stock market. The combination of moving average analysis and LSTM-based deep learning yields promising results, opening new avenues for financial market applications.