Forecasting Stock Prices: A Machine Learning-Based Approach for
Predictive Analytics Through Case Study
Affiliations
1
Department of Business Administration, International American University, Los Angeles, CA 90010, USA
2
Department of Science in Engineering Management, Trine University, Indiana, USA
Abstract
Stock price prediction has always been a challenging task, requiring careful observation of trends
and dynamics of the market because of the volatile and complex nature of financial markets.
Various factors affect market behavior all the time. Even some unquantifiable factors like
emotions of the masses, social and political dynamics, etc., also play a great role. So perfect
prediction of stock prices is next to impossible. But taking other quantifiable factors and their
behaviors into consideration is crucial for better prediction of the ups and downs of prices.
Various machine learning and deep learning models have been proposed to tackle the challenges
by capturing and interpreting complex patterns and relationships in historical price data.
Technical features are important for understanding market trends and thus improving the
accuracy of stock price predictions. In this paper, we calculate key technical indicators such as
Simple Moving Average (SMA), Exponential Moving Average (EMA), Relative Strength Index
(RSI), Moving Average Convergence Divergence (MACD), Bollinger Bands, and others. We
then focus on selecting the most relevant indicators by employing feature selection methods from
these to enhance the extraction of meaningful features reflecting underlying market behavior and
increase the probability of more precise prediction. Here, Recursive Feature Elimination (RFE)
and Random Forest Regressor-based importance ranking methods have been applied for the
feature sel...
Keywords:
Machine Learning, Deep Learning,
SMA, EMA, RSI, MACD, Bollinger
Bands, RFE, Random Forest
Regressor, Multivariate Analysis,
LSTM.