Abstract
In order to better study the stock trend and master the basic rules of stock trading, this paper uses the fuzzy system theory to transform the technology trading strategy in stock into the membership function in fuzzy mathematics, so as to study the trend change of technology trading rules in dynamic stock price with mathematical language. It can be seen from the experimental results that when only the moving average rule is adopted, the stock price trend is relatively flat, and the specific changes of the price cannot be accurately obtained. However, when the bull and bear rule is added, the stock price jumps greatly, so that the changes of the price can be easily captured, so as to make corresponding strategic adjustments to maximize the income.
Highlights
With development of the society and improvement of economy, more and more people began to contact the stock and become shareholders
In order to better study the stock trend and master the basic rules of stock trading, this paper uses the fuzzy system theory to transform the technology trading strategy in stock into the membership function in fuzzy mathematics, so as to study the trend change of technology trading rules in dynamic stock price with mathematical language. It can be seen from the experimental results that when only the moving average rule is adopted, the stock price trend is relatively flat, and the specific changes of the price cannot be accurately obtained
Wang [3] translated 12 trading strategies into price dynamic equation by using the fuzzy system in his article, including moving average rule, support and resistance rule, trend line rule, etc. These models were compared with random walk model; And through the simulation, it illustrates how the simple technical trading rules generate complex price changes
Summary
With development of the society and improvement of economy, more and more people began to contact the stock and become shareholders. Wang [3] translated 12 trading strategies into price dynamic equation by using the fuzzy system in his article, including moving average rule, support and resistance rule, trend line rule, etc These models were compared with random walk model; And through the simulation, it illustrates how the simple technical trading rules generate complex price changes. We can see that there is no significant difference between the individual moving average rule model and the random walk model in the price curve generated, but when other models such as the support and resistance rule are added to the price dynamic equation, the price curve has changed a lot This further illustrates that sometimes using two trading strategies at the same time can better capture the price trend. We use Wang’s method to combine MA and BBI, and study the trend changes of the stock price under these two trading strategies by transforming the technical trading rules into a mathematical function
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