Stock Price Prediction
using Machine Learning
Dhruvkumar Patel
Contents
• What is Stock Market?
• Why to predict Stock Price?
• Method: LSTM
• Dataset
• Results
• Conclusion
What is Stock Market?
• The Stock Market refers to public markets that exist for
issuing, buying, and selling stocks that trade on a stock
exchange or over-the-counter.
• Stocks, also known as equities, represent fractional ownership
in a company, and the stock market is a place where
investors can buy and sell ownership of such investible
assets.
Why to predict Stock Price?
• To eliminate the uses of Fundamental Analysis(Long Term).
• To eliminate the uses of Technical Analysis(Short Term).
• To eliminate the uses of Quantitative Analysis(Historic Data)
Method:
LSTM
• LSTM stands for Long Short Term Memory.
• It is a model that extends the memory of Recurrent Neural
Networks (RNN), which is capable of learning long term
dependencies.
• It is capable of capturing the patterns of both long term such
as a yearly pattern and short term such as weekly or daily
patterns.
Why to use LSTM?
• Using LSTM, time series forecasting models can predict future
values based on previous, sequential data and it is proven to
be extremely effective.
• The reason they work so well is that LSTM can store past
important information and forget the information that is not.
• The different gates inside LSTM boost its capability for
capturing non-linear relationships for forecasting.
LSTM Model
Dataset
Apple Last 1 year(3/15/21 to Apple (1/1/19 to 3/11/22)
3/11/22)
Train Data: 70%
Test Data: 30%
Results
Apple Stock of Last 1 Year(3/15/21 to
3/11/22)
MAE: 4.11
MSE: 27.17
RMSE: 5.21
Prediction of Next 5 Days
Results[Continue]
Apple Stock From 1/1/19 to 3/11/22
MAE: 7.34
MSE: 76.74
RMSE: 8.76
Prediction of
Next 30 Days
Conclusion
• We don't need the exact stock values of the future, but the
stock price movements, i.e. if it is going to rise or fall in the
near future.
• This LSTM model predict the data in smooth curve.
• This LSTM model predict data with MAE,RMSE between 4 to 8
which is efficient to predict accurate price.
References
Prashant Sharma, Machine Learning for Stock Market Prediction
(
https://www.analyticsvidhya.com/blog/2021/10/machine-learning-for-stock-market-predict
ion-with-step-by-step-implementation/?custom=TwBL912
)
Stock Price Prediction- Machine Learning
(https://data-flair.training/blogs/stock-price-prediction-machine-learning-project-
in-python)
Stock Market Prediction using Machine Learning
(https://www.mdpi.com/2079-9292/10/21/2717/pdf )
Avijeet Biswal, An Easy Guide to Stock Price Prediction Using Machine Learning
https://www.sciencedirect.com/science/article/pii/S1877050920307924
https://journalofbigdata.springeropen.com/articles/10.1186/s40537-020-00333-6
THANK YOU!