Predicting the Trend - Introduction and Feature Enrichment

Predicting the Trend This article tries to explore how machine learning helps to predict a trend based on historical data. We will use Foreign Exchange rates as an example to see if we can predict the daily rise and fall of currency pairs based on their previous market data. A pure technical analysis approach without taking into account market news or reports will be taken to simplify the machine learning model and the market data requirement. The following diagram shows the output of the targeting system with four currency pairs: As a common approach in Forex technical analysis, technical indicators will be used based on the historical price data. Historical data including the daily open, high, low, close and volume for each currency pair will be used to generate the technical indicator values. However, as opposed to manual technical analysis, we'll find a way for the system itself to determine which indicator(s) is more applicable under the current ...