Candlestick Analysis based Short Term Prediction of Stock Price Fluctuation using SOM-CBR

Stock market analysis and prediction has been one of the widely studied and most interesting time series analysis problems till date. Many researchers have employed many different models, some of them are linear statistic based while some non linear regression, rule, ANN, GA and fuzzy logic based. In this paper we have proposed a novel model that tries to predict short term price fluctuation, using candlestick analysis. This is a proven technique used for short term prediction of stock price fluctuation and market timing since many years. Our approach has been hybrid that combines self organizing map with case based reasoning to indemnify profitable patterns (candlestick) and predicting stock price fluctuation based on the pattern consequences.