Stock Price Forecast of Chinese Leading Liquor Stocks Using the Simple Moving Average

Authors

  • Yijia Pan

DOI:

https://doi.org/10.54691/bcpbm.v36i.3380

Keywords:

Simple moving average; price prediction; Chinese leading liquor stocks; machine learning.

Abstract

Forecasting the trend of price movement of the Chinese leading liquor stocks could produce in significant profits. Traders use technical analysis to forecast the future price of the stock and the simple moving average is among the most important tools of technical analysis. This article aims at applying tow machine learning models (Linear Regression and Long Short-Term Memory) on simple moving averages to see which model performs better, and whether simple moving averages support the forecast by the Root Mean Square Error. Some further rethinks are proposed in the end. The investigation proves that linear regression model is the best one to forecast the tendency of Chinese top three liquor stocks. Instead of assistance, simple moving average firmly express as a hindrance of the prediction. While the selection of time periods of simple moving average presents an unexpected influence on the accuracy of forecast.

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References

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Published

2023-01-13

How to Cite

Pan, Y. (2023). Stock Price Forecast of Chinese Leading Liquor Stocks Using the Simple Moving Average. BCP Business & Management, 36, 16–24. https://doi.org/10.54691/bcpbm.v36i.3380