Open Close Crossover Indicator for Stock Market Prediction
Stock Prices are very dynamic and volatile because of the underlying nature of the financial domain and also due to the mix of known parameters like Previous Days Closing Price and unknown factors like sentiments. Analyzing the huge stock market through Technical Indicators helps traders, analysts and investors to understand market sentiment and accordingly make rational decisions. Amongst the two types of analysis possible for prediction, technical and fundamental technical analysis is done primarily using Technical indicators, which are one of the best tools to predict such price movements. In this paper, a new technical indicator for Stock Market Prediction is introduced, calculated using data from Bombay Stock Exchange (BSE). This paper proposes a methodical technical indicator, Open close Crossover (OCC) Indicator which tracks price movement of stocks and give a buy/sell recommendation. This model has used a processed data set of Open Price (O) and Close price (C) for the period of 1 year from February 2017 to February 2018 whose Exponential Moving Average (EMA) is plotted, and inferences are deduced based on the behavior of the graphs for various periods. This paper proposes a technical indicator that outperforms the existing traditional technical indicators like crossover of slow and fast moving EMA and validated.
Keywords – Stock Market, Open Price, Close Price, Open Close Crossover indicator and Exponential Moving Average