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Forecasting Stock Prices with Sequential Deep Learning: A Long Short-Term Memory Approach

  • Ervin Yohannes*
  • , Aldin Febriansyah
  • , Nisa Dwi Septiyanti
  • , Suparji
  • , Agus Wiyono
  • , Aries Dwi Indriyanti
  • , Fitri Utaminingrum
  • , Chih Yang Lin
  • , Kahlil Muchtar
  • , Avirmed Enkhbat
  • *Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Investors often face significant challenges in predicting fluctuating stock price movements, which can lead to uncertainty and suboptimal investment decisions. This study aims to evaluate the performance of the Long Short-Term Memory (LSTM) deep learning model in forecasting stock prices. The dataset utilized is derived from the Pakistan Stock Exchange (KSE 100), and the model's performance is assessed using evaluation metrics including Mean Absolute Error (MAE), Mean Squared Error (MSE), Root Mean Squared Error (RMSE), and Mean Absolute Percentage Error (MAPE). The experimental results demonstrate that the LSTM model achieves strong predictive performance, with the lowest recorded MSE of 0.0004, RMSE of 0.0210, MAE of 0.0141, and MAPE of 0.0209, corresponding to an accuracy rate of 97.91%. These findings highlight the effectiveness of the LSTM model in stock price prediction and provide valuable insights for investors seeking to enhance decision-making through data-driven forecasting approaches.

Original languageEnglish
Title of host publication2025 8th International Conference on Vocational Education and Electrical Engineering
Subtitle of host publicationShaping a Sustainable Future with Green Innovation and Industry Collaboration for Education and Intelligent Technology Advancements, ICVEE 2025
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages177-183
Number of pages7
ISBN (Electronic)9798331585525
DOIs
Publication statusPublished - 2025
Event8th International Conference on Vocational Education and Electrical Engineering, ICVEE 2025 - Hybrid, Surabaya, Indonesia
Duration: 24 Sept 202525 Sept 2025

Publication series

Name2025 8th International Conference on Vocational Education and Electrical Engineering: Shaping a Sustainable Future with Green Innovation and Industry Collaboration for Education and Intelligent Technology Advancements, ICVEE 2025

Conference

Conference8th International Conference on Vocational Education and Electrical Engineering, ICVEE 2025
Country/TerritoryIndonesia
CityHybrid, Surabaya
Period24/09/2525/09/25

Keywords

  • deep learning
  • forecasting
  • long short-term memory
  • sequential
  • stock prices

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