Stock prices trends analysis using wavelet transform

Abstract

LQ45 is a stock market index for Indonesia Stock Exchange (ISX) consists of 45 companies that fulfill certain criteria to aim investor choosing some stocks. However, whether these stocks have tended to rise in price within a specified period. In this paper we analyze some stocks in LQ45 by discrete wavelet transforms. We decomposed signals from closed prices by discrete wavelet transform. Approximation signal from individual stock compared to approximation signal from JCI (Jakarta Composite Index) to justify that it have same trend.