A New Algorithm to Forecast Shanghai Composite Index ? Qingzhen

In current Chinese Security Market, stock or main index running orbit is a complicated phenomenon. In this paper, proposed a method to forecast Shanghai composite index using time series volume, turnover rate, close price, high price, low price, and open price as parameters. In order to simulate Shanghai composite index’s running orbit we improve a new partial differential equations simulation model to forecast its running process. We applied the new model to Chinese Shanghai composite index through empirical analysis. We can forecast the volatility of Shanghai Composite Index and its high and low in the future. Finally, the simulation result is proved very efficient and accurate related to real running orbit. Its running trend and picture are similar to the real data.