The Analysis and Prediction of Stock Price

Nowadays, the stock market has attracted more and more people's attention with its high risk and high returns, and forecasting method of stock price also emerge in an endless stream, such as nonlinear regression. In this paper, we introduce a kind of method based on Hidden Markov Model to forecast stock price trend. Which is different from the existing stock prediction, this paper attempts to find the hidden relationship existing between the stock prices, and corresponds to the Hidden Markov Model. The experimental result shows that, this method can get pretty accurate result, particularly effective in short period prediction.