StockNet
This section outlines how we generate predictions.
StockNet uses ensemble prediction
to predict the next trading day price direction. Until now, it is still impossible for StockNet to achieve 100% accuracy just like modern weather forecasts as the stock market is a chaotic system.
How it works
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Step 1: Download closing percentage data
We gather all historical closing percentage changes and group them into clusters.
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Step 2: Identify recent trading pattern
We extract the most recent price pattern and compare it to similar patterns from the past.
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Step 3: Predict the next move using probabilities
Based on how those past patterns played out, we estimate the most likely direction of the next closing price.