Applying machine learning algorithms to predict the stock price trend in the stock market – The case of Vietnam
Foundation theory
When discussing the stock market, with its inherent and complexity, the predictability of stock returns has always been a subject of debate that attracts much research. Fama (1970) postulates the efficient market hypothesis that determines that the current price of an asset always reflects all prior information available to it immediately. In addition, the random walk hypothesis states that a stock’s price changes independently of its history, in other words, tomorrow’s price will depend only on tomorrow’s information regardless of today’s price (Burton, 2018). These two hypotheses establish that there is no means of accurately predicting stock prices.
On the other hand, there are other authors who argue that, in…
