Research on stock analysis methods based on fluid mechanics

Research on stock analysis methods based on fluid mechanics

Zhang Jilin1, 2

1Research Center for Data Analysis, Fujian University of Technology, Fuzhou, Fujian  Province, China, 350118

2Fujian Collaborative Innovation center for Beidou Navigation and Intelligent Traffic, Fuzhou, Fujian Province, China, 350118

In this study, the leading indicator is considered as a new technical analysis method for evaluating stocks. This paper is written using the special characteristics and features of the principles of fluid motion, which can be applied to microscopic and macroscopic aspects of stock prices. Microscopic aspect: the stock that changes fastest is considered the leading indicator, which can be easily found by auto-filtering in Excel after working out the speed rate via program Matlab. The trend of other stocks will be predicted by analysing the leading indicator. Macroscopic aspect: determine the leading indicator, which are the top 10 stocks listed in the speed analysis results in the microscopic aspect. The trend of A-shares in a certain time period will be predicted according to the trend of the leading indicator. In order to verify the viability of the leading indicator analysis method in microscopic and macroscopic aspects, we do the following research. We collect 4 days of stock price data to find out the leading indicator via the microscopic or macroscopic leading indicator method. When the corresponding leading indicator is found, then we predict the trend of other stocks and A-shares in a certain time period, so that the feasibility of the leading indicator methods can be proved.