Iranian Journal of Finance

Predicting the trend of the total index of the Tehran Stock Exchange using an image processing technique

Document Type : Original Article

Authors

Roxane Pooresmaeil Niaki 1
Moslem Peymany foroushani 2
Seyed Morteza Amini 3

1 MSc, Department of Accounting and Management, Allameh Tabataba'i University, Tehran, Iran.

2 Assistant Prof., Department of Finance and Banking, Allameh Tabataba'i University, Tehran, Iran.

3 Associate Prof., School of Mathematics, Statistics and Computer Science, University of Tehran, Tehran, Iran.

10.61186/ijf.2024.426626.1442
Abstract
This study explores the considerable significance of candlestick chart patterns as a foundational asset within the realm of stock market analysis and prediction. As a graphical representation of historical price movements and patterns, Candlestick charts offer a distinct and valuable perspective for understanding how the financial market operates. This perspective assists us in accurately pinpointing the most advantageous times for making decisions to buy or sell financial securities, such as stocks or bonds. These charts provide insights into market trends and potential trading opportunities. We adopt an innovative approach by harnessing image processing techniques to extract and analyze patterns from Candlestick charts systematically. Our findings underscore the pivotal role of visual data in financial analysis, particularly in times of market volatility and uncertainty. Investors often resort to technical analysis strategies when confronted with erratic market trends, often relying on insights derived from chart-based analysis to guide their decision-making processes. By meticulously extracting essential insights from candlestick charts, our study aims to provide investors with more efficient and less error-prone tools. Ultimately, this endeavor contributes to the enhancement of decision-making precision and the mitigation of risks inherent in participating in the dynamic stock market landscape.

Keywords

Tehran Stock Exchange
Image processing
Market trend prediction
Machine learning
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Iranian Journal of Finance
Volume 9, Issue 1
Winter 2025
Pages 1-31

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