Elliott Wave Neural Network Forecast
Stock Market Forecast Tools SMFT-1 has been updated. One of the major changes is a new module in Technical Analyzer TA-1 sub-system. The new module analyzes waves and predicts the next extreme (high or low price) similar to Elliott Wave theory of recurrent stock market price structures. Fundamentally, the Elliott Wave model is based on a crowd psychology that follows between optimistic and pessimistic trends creating patterns that can be fitted to natural sequences.
However, instead of assuming that waves obey only the sequence of Fibonacci, harmonic, or fractal ratios, a more general approach has been developed – the software takes into consideration all extracted waves. Due to employing Neural Network (NN) the module enables identifying both the price and date of extremes. The software has a flexibility in tuning and optimizing computing parameters by users. It allows choosing the number of counted waves in each case for NN training in a range within 9..24. Also one can set the amount of iterations for NN learning from 50 to 5,000.