Analysis of Stock Market Prediction

Stock market prediction involves predicting future value of company stock or other financial instrument traded on an exchange. Various types of trading can be done in stock market. It could be short term trading or even long term trading but if someone can predict the value or class of that entity, it can yield very good return for the investment done. Prior to evolution of digital world, predictors continued to use paper work methods like fundamental and technical analysis. Various useful technical indicators such as SMA, EMAand MACD found to be very useful however with the advent of computer technologies and algorithms, prediction moved into technological realm. Analysts started building prediction system using Neural Network, Support Vector Machine, Decision Trees and Hidden Markov Model. Prediction accuracy really improved using algorithmic approach as well as evolutionary data mining techniques used for stock market prediction.