Stock Price Forecasting with LSTM: A Brief Analysis of Mathematics Behind LSTM

Abstract

Stock marketing prediction is really important in this digital world and for this reason, its forecasting tools are highly desired. This research examines the influence of Long Short-Term Memory (LSTM) in stock market prediction. The basic genetic algorithm behind the time series analysis tool is described with the help of a structure diagram, and its mathematical structure is explained. We also described the application of LSTM in the field of finance. LSTM is playing a vital role in prediction in several applications. Experiments on the proposed method have been conducted on stock market data. The results show that LSTM predicts the price quite fairly accurately. It outperformed other prediction models due to long-term dependency and due to its accuracy. The research demonstrates the LSTM tool’s impact on finance, particularly stock market prediction.