Abstract

This study proposes a Fuzzy Metagraph based Decision Support System (DSS) for short term and long term investment in share market. This rule base decision system will help traders to make correct decision at very low risk. Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD) and WILLIAM- %R are some of the Technical Indicators which are used as input to train the system which is integrated with Fuzzy Metagraph. This approach of incorporating Fuzzy Metagraph with RSI, MACD and WILLIAM-%R would be a new attempt in decision making on share market investment. Stocks listed in Bombay Stock Exchange (BSE) in India are used to evaluate the performance of the system. The results obtained from the proposed Fuzzy Metagraph based model are found to be satisfactory with very low risk. Three most used technical indicators MACD, RSI and WILLIAM-%R integrated with Fuzzy Metagraph are used to support the system. This method reduces the risk factor considerably for both short term and long term investors.

Highlights

  • An equity market is a public entity for the trading of company shares

  • Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD) and WILLIAM%R are some of the Technical Indicators which are used as input to train the system which is integrated with Fuzzy Metagraph

  • This approach of incorporating Fuzzy Metagraph with RSI, MACD and WILLIAM-%R would be a new attempt in decision making on share market investment

Read more

Summary

INTRODUCTION

An equity market is a public entity for the trading of company shares. Buyer or seller of stocks include individual retail investors, institutional investors like mutual funds, banks, insurance companies and hedge funds and publicly traded corporations trading in their own shares. Involvements of institutions have reduced trading cost encouraging many small investors to enter into the market. A trader decides about what share to trade, when to trade, using either fundamental or technical analysis. Technical analysis is a method of analyzing stock price movement by using historical price information to predict future price of a stock. Anbalagan Thirunavukarasu and Uma Maheswari / Journal of Computer Science 9 (9): 1146-1155, 2013 market decision support system for short term investors using fuzzy metagraph technique.

Related Works
Technical Indicators
Moving Average Convergence Divergence
Fuzzy Metagraph
Fuzzy Expert System
Mamdani Fuzzy Inference
System Results
CONCLUSION
Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call