Skip to Main Content
Skip Nav Destination
ASME Press Select Proceedings

Intelligent Engineering Systems Through Artificial Neural Networks, Volume 17

C. H. Dagli
C. H. Dagli
Search for other works by this author on:
No. of Pages:
ASME Press
Publication date:

Directional technical indicators are often considered a useful tool for forecasting stock market trends. In this study two feed-forward neural networks with backpropagation learning are trained to forecast the directional technical indicators +DI, −DI and ADX. By combining technical analysis and fuzzy logic, a new hybrid trading system has been developed with the goal of generating early buy∕sell signals, and hence better returns. The historical price data of the S&P 500 index from the year 2001 to the year 2005 are used in this study. The results obtained by the hybrid trading system are compared against those obtained using a buy-and-hold strategy, a technical indicator “rule-of-thumb” trading strategy, and a trading system based only on the neural network model without the aid of fuzzy logic.

Model Development
Conclusions and Future Work
This content is only available via PDF.
You do not currently have access to this chapter.
Close Modal

or Create an Account

Close Modal
Close Modal