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Prediction of Stock Price Using Machine Learning Techniques

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Prediction of Stock Price Using Machine Learning Techniques


Pawan Ashtankar | Aniket Kalode



Pawan Ashtankar | Aniket Kalode "Prediction of Stock Price Using Machine Learning Techniques" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Special Issue | Recent Advances in Computer Applications and Information Technology, March 2026, pp.20-26, URL: https://www.ijtsrd.com/papers/ijtsrd101274.pdf

Stock price prediction is a difficult assignment for investors and financial analysts due to the stock market's well-known dynamic and unpredictable behavior. Recent developments in artificial intelligence and the expansion of data availability have created new opportunities for financial market analysis. Finding hidden patterns in past stock market data and utilizing these patterns to predict future price movements has shown to be a very promising use of machine learning techniques. The goal of this study is to forecast stock prices using various machine learning methods and assess how well they work to increase prediction accuracy. The study makes use of historical stock market data, which includes characteristics like trade volume, opening and closing prices, and highest and lowest prices. To improve model performance, the data is meticulously preprocessed using techniques like data cleansing, normalization, and feature selection prior to deploying machine learning models. The data is analyzed and future stock price forecasts are made using a variety of machine learning techniques, such as Random Forest, Long Short-Term Memory (LSTM), and Linear Regression. Models that can capture sequential linkages in the data are given particular attention since stock market data exhibits a time-series structure. Deep learning models, like LSTM, are better at learning complicated market movements and long-term dependencies than other applicable techniques. Standard metrics like Mean Squared Error (MSE), Root Mean Squared Error (RMSE), and prediction accuracy are used to assess the models' performance. The study's findings show that, when compared to conventional statistical techniques, machine learning techniques can greatly improve stock price forecast accuracy. These models can offer insightful information that could aid traders and investors in making better financial decisions by examining past data and identifying significant trends. All things considered, this study emphasizes how machine learning is becoming more and more significant in financial market analysis. It also implies that more dependable prediction systems may result from integrating sophisticated algorithms with huge financial datasets. By adding other elements like technical indicators, market sentiment, and news-based data, future research can further enhance forecast performance. Predicting stock market movements remains one of the most daunting challenges for investors and analysts alike, primarily due to the market's inherent volatility and its sensitivity to a chaotic array of global variables. However, the dawn of the Big Data era and significant leaps in Artificial Intelligence have opened a new door: the ability to decode complex, non-linear patterns that were previously invisible to human observation. This study explores the efficacy of machine learning in transforming historical market data into actionable foresight. By leveraging a robust dataset of historical indicators—including opening and closing prices, daily highs and lows, and trading volumes—this research implements a rigorous preprocessing pipeline involving data cleansing, normalization, and strategic feature selection. We compare the predictive power of three distinct approaches: Linear Regression (the statistical baseline), Random Forest (the ensemble learning perspective), and Long Short-Term Memory (LSTM) networks. Given the chronological nature of financial markets, particular emphasis is placed on the LSTM model, a deep learning architecture specifically designed to master the long-term dependencies and sequential nuances inherent in time-series data. Our findings indicate a paradigm shift in accuracy when moving from traditional statistical models to deep learning architectures. Evaluated against standard industry metrics such as Mean Squared Error (MSE) and Root Mean Squared Error (RMSE), the results demonstrate that machine learning models—specifically LSTM—offer a superior ability to capture the "rhythm" of the market. This study concludes that while the stock market may never be perfectly predictable, the integration of advanced algorithms provides a significant edge, offering traders and investors a sophisticated toolkit for informed decision-making. We further suggest that the future of financial forecasting lies in "hybrid intelligence," combining these price-action models with alternative data such as real-time news sentiment and macroeconomic indicators. The landscape of stock market prediction has undergone a radical transformation, moving away from rigid linear models toward dynamic, self-evolving systems. In the current financial climate of 2026, the traditional reliance on "Open-High-Low-Close" (OHLC) data is increasingly viewed as just one piece of a much larger puzzle. Modern research now emphasizes the integration of Alternative Data, such as real-time social media sentiment, global geopolitical news feeds, and even satellite imagery for supply chain monitoring. This shift acknowledges that stock prices do not exist in a vacuum; they are the byproduct of human emotion and global events. By feeding these diverse data streams into machine learning architectures, researchers can move beyond simple trend-following and begin to identify the underlying "market psychology" that precedes major price shifts. While foundational techniques like Linear Regression provide a necessary baseline for understanding market direction, they often struggle to map the "chaos" of high-volatility periods. This is where ensemble methods like Random Forest excel, as they can handle non-linear relationships and prioritize which features—such as trading volume or technical indicators like RSI—actually matter at any given moment. However, the true breakthrough in 2026 lies in Recurrent Neural Networks (RNNs), specifically the Long Short-Term Memory (LSTM) architecture. Unlike standard models that treat each day as an isolated event, LSTMs possess a "digital memory" that allows them to recognize patterns over weeks or months.

Stock Price Prediction, Machine Learning, Financial Market Analysis, Time Series Forecasting, Long Short-Term Memory (LSTM), Random Forest, Linear Regression, Data Mining, Predictive Analytics, Stock Market Trends. Stock Price Prediction, Machine Learning, Long Short-Term Memory (LSTM), Random Forest, Time-Series Forecasting, Deep Learning, Financial Analytics, Technical Indicators (RSI, MACD), Sentiment Analysis, Ensemble Learning, Predictive Modeling, Mean Square.


IJTSRD101274
Special Issue | Recent Advances in Computer Applications and Information Technology, March 2026
20-26
IJTSRD | www.ijtsrd.com | E-ISSN 2456-6470
Copyright © 2019 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0)

International Journal of Trend in Scientific Research and Development - IJTSRD having online ISSN 2456-6470. IJTSRD is a leading Open Access, Peer-Reviewed International Journal which provides rapid publication of your research articles and aims to promote the theory and practice along with knowledge sharing between researchers, developers, engineers, students, and practitioners working in and around the world in many areas like Sciences, Technology, Innovation, Engineering, Agriculture, Management and many more and it is recommended by all Universities, review articles and short communications in all subjects. IJTSRD running an International Journal who are proving quality publication of peer reviewed and refereed international journals from diverse fields that emphasizes new research, development and their applications. IJTSRD provides an online access to exchange your research work, technical notes & surveying results among professionals throughout the world in e-journals. IJTSRD is a fastest growing and dynamic professional organization. The aim of this organization is to provide access not only to world class research resources, but through its professionals aim to bring in a significant transformation in the real of open access journals and online publishing.

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