A Multilevel Wavelet Decomposition Network Hybrid Model Utilizing Cyclic Patterns for Stock Price Prediction

Stock price prediction is an important and complex time-series problem in academia and financial industries. Stock market prices are voted by all kinds of investors and are influenced by various factors. According to the literature studies, such as Elliott’s wave theory and Howard’s market cycle inv...

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Main Authors: H. R. Wen, Mingchuan Yuan, Shuxin Wang, Lixin Liang, Xianghua Fu
Format: Article
Language:English
Published: Wiley 2024-01-01
Series:Complexity
Online Access:http://dx.doi.org/10.1155/2024/1124822
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author H. R. Wen
Mingchuan Yuan
Shuxin Wang
Lixin Liang
Xianghua Fu
author_facet H. R. Wen
Mingchuan Yuan
Shuxin Wang
Lixin Liang
Xianghua Fu
author_sort H. R. Wen
collection DOAJ
description Stock price prediction is an important and complex time-series problem in academia and financial industries. Stock market prices are voted by all kinds of investors and are influenced by various factors. According to the literature studies, such as Elliott’s wave theory and Howard’s market cycle investment theory, the cyclic patterns are significant characteristics of the stock market. However, even several studies that do consider cyclic patterns (or similar concepts) suffered from the data leakage or boundary problems, which could be impractical for real applications. Inspired by the abovementioned, we propose a hybrid deep learning model called mWDN-LSTM, which correctly utilizes the cyclic patterns’ information to predict stock price while avoiding the data leakage and alleviating boundary problems. According to the experiments on two different datasets, our model mWDN-LSTM outperforms the well-known benchmarks such as CNN-LSTM on the same experimental setup and demonstrates the effectiveness of utilizing cyclic patterns in stock price prediction.
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issn 1099-0526
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spelling doaj-art-bfef2270bc204e3ba70673b2cc6df20f2025-08-20T02:19:26ZengWileyComplexity1099-05262024-01-01202410.1155/2024/1124822A Multilevel Wavelet Decomposition Network Hybrid Model Utilizing Cyclic Patterns for Stock Price PredictionH. R. Wen0Mingchuan Yuan1Shuxin Wang2Lixin Liang3Xianghua Fu4Shenzhen Technology UniversityShenzhen Technology UniversityShenzhen Technology UniversityShenzhen Technology UniversityShenzhen Technology UniversityStock price prediction is an important and complex time-series problem in academia and financial industries. Stock market prices are voted by all kinds of investors and are influenced by various factors. According to the literature studies, such as Elliott’s wave theory and Howard’s market cycle investment theory, the cyclic patterns are significant characteristics of the stock market. However, even several studies that do consider cyclic patterns (or similar concepts) suffered from the data leakage or boundary problems, which could be impractical for real applications. Inspired by the abovementioned, we propose a hybrid deep learning model called mWDN-LSTM, which correctly utilizes the cyclic patterns’ information to predict stock price while avoiding the data leakage and alleviating boundary problems. According to the experiments on two different datasets, our model mWDN-LSTM outperforms the well-known benchmarks such as CNN-LSTM on the same experimental setup and demonstrates the effectiveness of utilizing cyclic patterns in stock price prediction.http://dx.doi.org/10.1155/2024/1124822
spellingShingle H. R. Wen
Mingchuan Yuan
Shuxin Wang
Lixin Liang
Xianghua Fu
A Multilevel Wavelet Decomposition Network Hybrid Model Utilizing Cyclic Patterns for Stock Price Prediction
Complexity
title A Multilevel Wavelet Decomposition Network Hybrid Model Utilizing Cyclic Patterns for Stock Price Prediction
title_full A Multilevel Wavelet Decomposition Network Hybrid Model Utilizing Cyclic Patterns for Stock Price Prediction
title_fullStr A Multilevel Wavelet Decomposition Network Hybrid Model Utilizing Cyclic Patterns for Stock Price Prediction
title_full_unstemmed A Multilevel Wavelet Decomposition Network Hybrid Model Utilizing Cyclic Patterns for Stock Price Prediction
title_short A Multilevel Wavelet Decomposition Network Hybrid Model Utilizing Cyclic Patterns for Stock Price Prediction
title_sort multilevel wavelet decomposition network hybrid model utilizing cyclic patterns for stock price prediction
url http://dx.doi.org/10.1155/2024/1124822
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