ABSTRACT
This chapter aims to construct an intelligent decision support system, based on technical analysis (TA), to aid investments. TA is a prevailing investment approach in financial markets, ranging from trading foreign exchange derivatives to stock investments. The chapter proposes a hybrid model that integrates the variable-consistency dominance-based rough set approach (VC-DRSA) with fuzzy inference–enhanced technical signals, and which adopts the idea of multiple rules–based decision making to support stock investment decisions. It illustrates a numerical case using historical data from the weighted average index of the Taiwan stock market with positive findings. The chapter adopts the fuzzy inference technique to enhance experts' judgments. It attempts to devise a hybrid soft computing model based on the knowledge of investment professionals, to prevent unreasonable experiment settings. Domain experts were consulted and their knowledge/experience transformed for the discretization of VC-DRSA, which aligns the model setting with trading practice.
