PREDICTION OF STOCK MARKET MOVEMENT USING HISTOGRAM AND DATA MINING

The Moving Average Convergence Divergence (MACD) trading indicator is simple and has been widely used in financial markets to provide trading signals. The MACD-Histogram (MACDH) can be derived from MACD as a second-order trading signal of price actions. To reduce the lagging effects in MACD&MACDH, forecasted values are introduced in a hybrid trading signal, termed as the forecasted MACDH. A detailed trading simulation is performed for a single stock/commodity under a single long-short-MACD parameter of different timeframes of charts is taken into consideration to explain the experimental design.

In the Stock Market, Commodity Market, Forex Market all over the World this concept of Histograms can be applied. MACD Histogram is actually a value that can be positive or negative according that value a bar is plotted on the MACD Technical Indicator. This MACD Histogram gives the answer to what will be the movement of the market in future and according to that the investor or trader can take decision on Buy/Sell or Long/Short.

The Concept Data Mining is used to retrieve the data and values of previous and current Histograms. Data mining is a process used by companies to turn raw data into useful information. By using software to look for patterns in large batches of data, businesses can learn more about their customers and develop more effective marketing strategies as well as increase sales and decrease costs. Data mining depends on effective data collection