Basic Market Forecasting with Encog Neural Networks

In this article I will show how to apply a neural network to financial prediction. This program is implemented as a Microsoft WPF application using C#. For neural network processing, it makes use of the Encog Artificial Intelligence framework. This application attempts to use some of the same principles that technical market analysts use.

Technical analysts attempt to forecast future security direction through the analysis of past market data. Pure technical analysts are primarily interested in price and volume information, rather than any sort of fundamental information about the company, such as earnings, debt ratios, or product offerings. The theory is that all such fundamental data is already factored into the price and volume of the underlying security. Many investment disciplines advocate the use of both technical and fundamental components. However, the focus of this article is the use of pure technical data.