Applying Neural Networks in Technical Analysis of Financial Markets

摘要

The motivation behind the use of an artificial neural network is to speed up the analysis or design of process substantially. The main advantage of a neural network is in its ability to approximate functional relationships, particularly when the relationship is nonlinear and/or not well-defined, and thus difficult to model by conventional means. In this paper, a neural network of the type LVQ is used to aid in technical analysis of financial markets. The network is able to identify and/or locate shapes and figures that describe the behavior of financial markets.