Enhancing Stock Price Predictions with a Multi-Technical Indicator Strategy Model

Abstract

Participating in the stock market goes beyond simply investing capital; it requires a deep understanding of dynamic market intricacies. Proficiency in interpreting market trends is crucial for making informed decisions that maximize returns and minimize potential losses. Without this expertise, investors are vulnerable to financial missteps resulting from misreading trends. The research addresses these concerns through a focused approach, guided by three key objectives. First and foremost, it conducts a thorough analysis of indicator correlations to assess the effectiveness of proposed technical indicators for accurate stock market predictions. Verified correlations then inform the application of a discerning multiple regression model, optimizing the use of individual indicators or their combinations. Lastly, a meticulous evaluation of predictive precision utilizes quantitative measures such as MAPE, MAD and MSE to provide a comprehensive assessment of indicators and strategies, shedding light on their effectiveness in the intricate realm of stock market forecasting.