Application of Neural Network in Analysis of Stock Market Prediction

Predicting the stock market is very difficult since it depends on several known and unknown factors. So many methods like Technical analysis, Fundamental analysis, Time series analysis and statistical analysis etc. are all used to attempt to predict the price in the share market but none of these methods are proved as a consistently acceptable prediction tool. Artificial neural network (ANN), a field of Artificial Intelligence (AI), is relatively new, active and promising technique on finance problem such as stock exchange index prediction, bankruptcy prediction and corporate bond classification. ANN, is a popular way to identify unknown and unseen patterns in data which is suitable for share market prediction. We used Feedforward neural network trained by Back propagation algorithm to make prediction. The amalgamation of profit and time factors with training procedure made an improvement in forecasted result for Feedforward neural network.