Artificial neural network intelligent method for prediction

Abstract

Accounting and financial classification and prediction problems are high challenge and researchers use different methods to solve them. Methods and instruments for short time prediction of financial operations using artificial neural network are considered. The methods, used for prediction of financial data as well as the developed forecasting system with neural network are described in the paper. The architecture of a neural network used four different technical indicators, which are based on the raw data and the current day of the week is presented. The network developed is used for forecasting movement of stock prices one day ahead and consists of an input layer, one hidden layer and an output layer. The training method is algorithm with back propagation of the error. The main advantage of the developed system is self-determination of the optimal topology of neural network, due to which it becomes flexible and more precise The proposed system with neural network is universal and can be applied to various financial instruments using only basic technical indicators as input data.