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Index Frequency-Based Contour Selection of Gray Wave Forecasting Model and Its Application in Shanghai Stock Market

  • Xingyuan LiEmail author
  • Qifeng Tang
  • Shaojun Ning
Conference paper
Part of the Springer Proceedings in Business and Economics book series (SPBE)

Abstract

Indexes reflect the mechanism of the stock market and the Gray Wave Forecasting Model (GWFM) which has been confirmed to be one of the most effective methods for forecasting. However, the previous method did not take into account the fact that the larger the index frequency is, the more likely this index is to appear in the future. According to the changing law of indexes, an index frequency-based contour selection of GWFM is put forward in this study where the classical uniformly spaced contour line is used twice to select the contour lines. Using this model, the fluctuation trend of Shanghai stock indexes is well predicted which demonstrated that this model has certain advantage over the original GWFM at forecasting stock indexes.

Keywords

Gray wave predicting Index frequency-based contours Shanghai stock market indexes 

Notes

Acknowledgements

The authors gratefully acknowledge financial support from the Science and Technology Commission of Shanghai Municipality (No.17DZ1101005).

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Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.School of BusinessEast China University of Science and TechnologyShanghaiChina
  2. 2.Shanghai Zamplus Technology Co., LtdShanghaiChina

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