Financial Market Trend Forecasting and Performance Analysis Using LSTM

TL;DR

This paper introduces an LSTM-based method for financial market trend forecasting, emphasizing comprehensive data preprocessing and performance comparison with traditional models across different market environments.

Contribution

It proposes a novel LSTM-based forecasting approach that integrates diverse financial data types and provides a comparative analysis with existing methods.

Findings

LSTM outperforms traditional models in trend prediction accuracy.

Comprehensive data preprocessing improves forecasting performance.

Performance varies with different financial market conditions.

Abstract

The financial market trend forecasting method is emerging as a hot topic in financial markets today. Many challenges still currently remain, and various researches related thereto have been actively conducted. Especially, recent research of neural network-based financial market trend prediction has attracted much attention. However, previous researches do not deal with the financial market forecasting method based on LSTM which has good performance in time series data. There is also a lack of comparative analysis in the performance of neural network-based prediction techniques and traditional prediction techniques. In this paper, we propose a financial market trend forecasting method using LSTM and analyze the performance with existing financial market trend forecasting methods through experiments. This method prepares the input data set through the data preprocessing process so as to reflect all the fundamental data, technical data and qualitative data used in the financial data analysis, and makes comprehensive financial market analysis through LSTM. In this paper, we experiment and compare performances of existing financial market trend forecasting models, and performance according to the financial market environment. In addition, we implement the proposed method using open sources and platform and forecast financial market trends using various financial data indicators.