DEEP LEARNING WITH LSTM-KERAS NETWORK

LSTM to predict Dow Jones Industrial Average: A Time Series forecasting model

Long short-term memory networks for financial market predictions

Image by author

https://sarit-maitra.medium.com/membership

Dow Jones Industrial Average (DJIA) tracks 30 large, publicly-owned companies trading on the New York Stock Exchange (NYSE) and the NASDAQ. Although, the Industrial part of the name is largely historical, as most of the modern 30 components have little or nothing to do with traditional heavy industry. It uses the price-weighted index which means that, stocks with a higher share price carry a greater weight in the index than stocks with a low share price.

Here, we will experiment with the LSTM network and historical data since 2000, and investigate that, how accurately we can predict future Closing price. To keep this simple, we will not do much feature engineering here, rather, will forecast the Close price index based historical open, close, high, low & volume.

Neural Network

Let us understand a bit of theoretical concept about neural network.

Neural networks have an input layer, one or many hidden layers, and an output layer. The number of…