Wavelet analysis of stock market prices
Akisato MIZUNO, Akiyoshi IIDA, Toshiharu Nakagawa · Journal of the Visualization Society of Japan · 2004
Wavelet analysis is one of the suitable methods to estimate characteristics of unsteady phenomena. In this paper, wavelet analysis was applied to predict the stock prices. Stock-broking timing can be estimated by using wavelet signal which depends on the wavelet coefficient. However, profit does not always accord in change magnitude of wavelet coefficient. Short term trade provides much profit compare to that of the maximum wavelet coefficient. The profit of the stock trade on the basis of human judgment compared with the wavelet analysis. After 1700 business-days trade, the wavelet based prediction brought higher profit. It reveals that the wavelet is useful for stock prices prediction.