Aslıhan Akar, M.Sc.
Department of Financial Mathematics
August 2021
Supervisor: Ömür Uğur (Institute of Applied Mathematics, Middle East Technical University, Ankara)
Abstract
In this report, we study, first, Tesla Motors’ stock price prediction in a traditional way using technical indicators like Moving Average, Relative Strength Index, Parabolic SAR, Commodity Channel Index, Stochastic Oscillator and Awesome Oscillator in the first part. Having analyzed Tesla Motors’ stock price with traditional technical indicators, we use long short term memory model for prediction. In long short term memory model, closing stock prices of Tesla Motors’ for two years are used. The model can predict the trend successfully. The technical indicators can provide context to trends, be used to identify divergences, and even help with timing of potential entry and exit signals. But using just one of the technical indicators is generally considered as a risky decision because one must be aware of announcements and headlines that play a crucial role to determine the stock price.
Keywords: Technical Indicators, Long Short Term Memory, Stock price prediction