The Use of Neural Networks in Stock Market Prediction: Part 4

The advantage of ANNs is that they are flexible. They will, if correctly trained, learn to classify any pattern in the training library correctly: if they are given a pattern on which they have been previously trained, they will produce the correct output. However, they will also produce the correct output if they are given a pattern similar to one they have seen during training. They will therefore classify patterns that they have never seen before, based on the closest matching training pattern.

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