Stock Trading Alert : with fuzzy knowledge-based systems and technical analysis

Abstract

Understanding financial market condition becomes necessary for traders/investors to obtain maximum profit. Forecasting market capital needs fuzzy algorithm with method/indicators which is proven to be successful in market and used by previous traders. To obtain momentum for entry/exit easily, the use of some technical indicators and combination of fundamental analysis and fuzzy logic can provide very good signals. This system utilizes data from Indonesian Stock Market Exchange, especially to LQ45 stocks to facilitate the selection of 677 companies listed in the Indonesian Stock Market Exchange. It is expected that traders/investors get entry momentum, certainty for hold/exit and increasing portfolio and can reduce loss. Based on indicators above, we develop prototype system to get generate results. To avoid bias of companies selection, we will only focus Liquid (LQ45) stocks which have strong fundamental factor. Performance by using Fuzzy Technique combined with indicators and triggered using three candlesticks as momentum entry Buy/Sell made trading more confident and got very high reward. This paper does not cover to what extent the stock price will keep increasing, so it is necessary to develop the next method to make forecasting more accurate with maximum profits.