Stock Market Forecasting Using Hidden Markov Model with Clustering Algorithm
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International Journal of Biotech Trends and Technology (IJBTT) |  |
| © 2014 by IJBTT Journal | ||
| Volume-3 Number-3 |
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| Year of Publication : 2014 | ||
| Authors : | ||
 10.14445/22490183/IJBTT-V3I3P1 |
Citation
Article: Stock Market Forecasting Using Hidden Markov Model with Clustering Algorithm,International Journal of Biotech Trends and Technology (IJBTT),V3(1):1-10 January 2014. Published by Seventh Sense Research Group.
Abstract
This paper presents Hidden Markov Models (HMM) with clustering algorithm for forecasting the stock Behavior. In practice HMM has been utilized in pattern recognition and classification problem. In recent days it is applied to study the stock market behavior. This model Performed well in the study of financial market. Firstly the Gaussian Mixture distribution identifies the number of components in the data. In this study, the clustering algorithm utilized to classifying the sequence. It gives better result than conventional classification method. On the Basis of experiment it was found that HMM with Clustering algorithm performed well and gives Mean Absolute Percentage Error (MAPE) 1.31%.
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Keywords — Hidden Markov Model, Clustering algorithm, K-means algorithm, Weighted Average