The comparative study between moving average method and fractals sstheory for prediction of stock price behavior in Taiwan

Abstract

This study uses the stock market of Taiwan as data source, and applies Fractal Method and Moving Average Method (MA) to conduct comparative research and analysis of stochastic data of stock price. Three stocks of traditional industries and with large-cap index weights are studied to explore whether there are any specifi c changes and regularities in seemingly irregular stock prices. Prediction accuracy of these two methods above is also compared.

Keywords:

• Fractal Theory
• Moving Average Method
• Stock Behavior Prediction