| Abstract: |
Navigating the intricate landscape of financial markets requires adept
forecasting of stock price movements. This paper delves into the potential of
Long Short-Term Memory (LSTM) networks for predicting stock dynamics, with a
focus on discerning nuanced rise and fall patterns. Leveraging a dataset from
the New York Stock Exchange (NYSE), the study incorporates multiple features
to enhance LSTM's capacity in capturing complex patterns. Visualization of key
attributes, such as opening, closing, low, and high prices, aids in unraveling
subtle distinctions crucial for comprehensive market understanding. The
meticulously crafted LSTM input structure, inspired by established guidelines,
incorporates both price and volume attributes over a 25-day time step,
enabling the model to capture temporal intricacies. A comprehensive
methodology, including hyperparameter tuning with Grid Search, Early Stopping,
and Callback mechanisms, leads to a remarkable 53% improvement in predictive
accuracy. The study concludes with insights into model robustness,
contributions to financial forecasting literature, and a roadmap for real-time
stock market prediction. The amalgamation of LSTM networks, strategic
hyperparameter tuning, and informed feature selection presents a potent
framework for advancing the accuracy of stock price predictions, contributing
substantively to financial time series forecasting discourse. |