TECHNICAL ANALYSIS OF FUZZY METAGRAPH BASED DECISION SUPPORT SYSTEM FOR CAPITAL MARKET

Abstract

This study proposes a Fuzzy Metagraph based Decision Support System (DSS) for short term and long term investment in share market. This rule base decision system will help traders to make correct decision at very low risk. Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD) and WILLIAM- %R are some of the Technical Indicators which are used as input to train the system which is integrated with Fuzzy Metagraph. This approach of incorporating Fuzzy Metagraph with RSI, MACD and WILLIAM-%R would be a new attempt in decision making on share market investment. Stocks listed in Bombay Stock Exchange (BSE) in India are used to evaluate the performance of the system. The results obtained from the proposed Fuzzy Metagraph based model are found to be satisfactory with very low risk. Three most used technical indicators MACD, RSI and WILLIAM-%R integrated with Fuzzy Metagraph are used to support the system. This method reduces the risk factor considerably for both short term and long term investors.