Influential Article Review - An Influential Modern Predictive Model Based on Markov Chain FCM Thresholds for the Study of Stock Exchange Capacity

Abstract

This paper examines financial market.. We present insights from a highly influential paper. Here are the highlights from this paper: This paper explores the power of stock trading trend using an integrated New Threshold Fuzzy Cognitive Maps (NTFCMs) Markov chain model. This new model captures the positive as well as the negative jumps and predicts the trend for different stocks over 4 months which follow an uptrend, downtrend and a mixed trend. The mean absolute per cent error (MAPE) tolerance limits, the root mean square error (RMSE) tolerance limits are determined for various stock indices over a multi-timeframe period and observed for the existing methods lying within the defined limits. The results show for every ‘n’ number of predictions made, the predicted close value of the day’s stock price was within tolerance limit with 0 % error and with 100% accuracy in predicting the future trend. For our overseas readers, we then present the insights from this paper in Spanish, French, Portuguese, and German.