COMPARISON OF TECHNICAL AND FUNDAMENTAL INDICATORS IN STOCK PRICE FORECASTING

Abstract

This article compares fundamental and technical analysis in predicting stock prices using machine learning models. Considers the feasibility of using the two approaches together. Tests conducted in 140 companies from the S&P 500 list show that models using indicators based on fundamental analysis are superior to those using technical analysis indicators, with the level of effectiveness varying depending on the industry. It is noted that, in 95% of cases, the use of combined indicators leads to a decrease in the standard error (RMS) compared to the use of only fundamental or technical indicators.