Forecasting the Direction of Indonesia’s Consumer Goods Sector Stock Price Movement Using Fuzzy Kernel Robust C-Means.

Investors have an intention to gain profit from every investment they made. A stock is one of the investment tools that could gain high profit. The stock has become one of the popular investment tools in Indonesia. Due to the complicated factors in the stock market, it’s hard to obtain an accurate prediction model to foresee the stock price movement. If investors could foresee the movement of stock price, they will know what decision they made, whether it is to buy, hold or sell. Thus, this paper focused on the application of Fuzzy Kernel Robust C-Means in forecasting the direction of Indonesian stock price movement, specifically, on the consumer goods sector. There are seventeen technical indicators were calculated in this paper by using the historical stock data. The purpose of using Fuzzy Kernel Robust C-Means is it can show the robustness to the outlier. The stocks data that we will be using is from particular companies that listed on Indonesia Stock Exchange (IDX) in consumer goods sector. The outcome shows that the best model of the complete experiment with 100 % accuracy given with σ = 0.01 using 90 % training data. [ABSTRACT FROM AUTHOR]