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Estimating Financial Trends by Cubic B-Spline Fitting via Fisher Algorithm

Author

Listed:
  • Mehmet BARAN
  • Sýtký SÖNMEZER
  • Abdülvahid UÇAR

    (Beykent University, Turkey)

Abstract

Trends have a crucial role in finance such as setting investment strategies and technical analysis. Determining trend changes in an optimal way is the main aim of this study. The model of this study improves the optimality by cubic b-spline fitting to the equations to reduce the error terms. The results show that cubic b-spline fitting is more efficient compared to the first order Fisher Method and original Fisher Method. This method may be used to determine regime switches as well.

Suggested Citation

  • Mehmet BARAN & Sýtký SÖNMEZER & Abdülvahid UÇAR, 2015. "Estimating Financial Trends by Cubic B-Spline Fitting via Fisher Algorithm," Turkish Economic Review, KSP Journals, vol. 2(1), pages 20-25, March.
    • Handle: RePEc:ksp:journ2:v:2:y:2015:i:1:p:20-25
    as

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    References listed on IDEAS

    as
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    3. Boginski, Vladimir & Butenko, Sergiy & Pardalos, Panos M., 2005. "Statistical analysis of financial networks," Computational Statistics & Data Analysis, Elsevier, vol. 48(2), pages 431-443, February.
    4. Marahaj, E.A. & Inder, B., 1999. "Forecasting Time Series from Clusters," Monash Econometrics and Business Statistics Working Papers 9/99, Monash University, Department of Econometrics and Business Statistics.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Technical Analysis; Trends; Regime Switches; Investment Strategies.;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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