The Role Of Artificial Intelligence In Predicting Stock Market Trends

Abstract

Using methods that are based on “artificial intelligence (AI)”, this work makes an effort to solve the challenge of predicting the “stock market”. In order to create models that can accurately anticipate the “stock market”, the major foundations that may be utilised are “fundamental analysis” and technical analysis. By utilising regression “machine learning algorithms”, technical analysts are able to make predictions regarding the final positions of stocks at the conclusion of the trading day. This is accomplished by analysing past prices & patterns. The categorisation of sentiment in the news and social media is accomplished via the use of “machine learning classification algorithms” within the realm of basic analysis. In contrast to “fundamental analysis,” which evaluates tweets that are available to the general public and include information on the “stock market,” technical analysis makes use of “Yahoo Finance’s price history data.” A “fundamental analysis” is conducted with the purpose of determining the influence that sentiment has on forecasts regarding the “stock market.” It would be premature to assert that “artificial intelligence” can transcend the financial markets, bearing in mind the studies that reveal a reasonable level of performance. This is because the current stage of technical advancement in the field of artificial intelligence is not yet complete.

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