A short-term stock price cycle visualization tool using a weighted graph
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Abstract
This research presents the visualization tool for creating a weighted graph that shows a short cycle of stock prices. The weighted graph is implemented using vis.js library based on the gathered stock price database. The visualization presents the stock price boundary and trend which can aid the investors. The graph orders nodes by prices and includes the frequency of cycle occurrences. Nodes are connected and formed as a directed graph. The amount of price change is implied by edges with the size, color, length and is labeled in the order of the unit of change similar to the number line. From the investment scope, we divide the graph into: 1) the graph showing the minimum reference price suggesting for buying 2) the graph showing the maximum reference price against selling. From the stock price collected from SET for 1 year, we evaluated the application in creating the stock price cycle graph for the companies under SET100 for 10 companies with the history data 5, 10, 15, 20 and 25 days backward. The graph can demonstrate the price change as a cycle, the direction, and the change trend. This enables the investors to specify the boundary of buying and selling price at the appropriate time in order to find the turning point for investment. This pricing scheme resulting from the price cycle can lead to 64% of the success of buying and lead to 57% of the success of selling. This visualization is a decision support system helping the investor to buy and sell within the time frame for a short investment period.
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