Index Frequency-Based Contour Selection of Gray Wave Forecasting Model and Its Application in Shanghai Stock Market
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.
KeywordsGray wave predicting Index frequency-based contours Shanghai stock market indexes
The authors gratefully acknowledge financial support from the Science and Technology Commission of Shanghai Municipality (No.17DZ1101005).
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