Stock Transaction Strategy Using Deep Learning and Support-Resistance Level Methods

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

The right decision on stock trading is important because it can impact stock gain or loss. The support-resistance level method is used to predict signal stock trading with good results. The deep learning method is already used for stock price forecasting, but stock return performance has not yet been compared. This study proposed comparing stock return from support-resistance level and deep learning method. The deep learning method is represented by Gated Recurrent Units (GRU), Long Short-Term Memory (LSTM), and a combination of the two models, each with two stacked layers: GRU-LSTM and LSTM-GRU. The backtesting method compares the best deep learning and a support-resistance level on stock return. Backtesting using stock trading signal by extracting result from support-resistance level and deep learning methods in 1,000 days. As the best performance on deep learning, the GRU model produces an average stock return of 256.33%.

Original languageEnglish
Title of host publication2025 IEEE International Conference on Artificial Intelligence and Mechatronics Systems, AIMS 2025
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9798331578053
DOIs
Publication statusPublished - 2025
Externally publishedYes
Event3rd IEEE International Conference on Artificial Intelligence and Mechatronics Systems, AIMS 2025 - Sumedang, Indonesia
Duration: 24 May 202525 May 2025

Publication series

Name2025 IEEE International Conference on Artificial Intelligence and Mechatronics Systems, AIMS 2025

Conference

Conference3rd IEEE International Conference on Artificial Intelligence and Mechatronics Systems, AIMS 2025
Country/TerritoryIndonesia
CitySumedang
Period24/05/2525/05/25

Keywords

  • Deep Learning
  • GRU
  • LSTM
  • Stock Trading
  • Support-Resistance Level

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