[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-118644-en":3,"doc-seo-118644-105":30,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":4,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":27,"seo_description":14,"update_tm":28,"read_time":29},118644,1099514068365,"Aurelia","https://ap-avatar.wpscdn.com/avatar/10000253d8d9f28188e?_k=1776742907772140068",8,"Research & Report","Machine Learning Predictions of Stock Market Pattern Using Econophysics Approach","A stock market collapse and crash describe distinct failures marked by sudden, large price declines. Econophysics frames these events as outcomes of interrelated market behaviors and newly forming patterns within a broader stability–instability cycle. This study examines stock market patterns using an Econophysics-informed workflow combined with Python-based predictive modeling. Monte Carlo Simulation is employed to select an appropriate machine learning algorithm. Using LSTM, predicted prices for Inari Amertron Berhad track actual movements, correctly indicating upward and downward trends, and aligning buy/sell recommendations with realized and anticipated price behavior, supporting data-driven investor decision-making.","Chapter 23  \nMachine Learning Predictions of Stock Market Pattern Using Econophysics Approach  \nNur Nadia Hani binti Roslan & Shahino Mah bin Abdullah  \nUniversiti Sains Islam Malaysia (USIM), Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan, Malaysia  \n[nadiahani@raudah.usim.edu.my](nadiahani@raudah.usim.edu.my)  \nABSTRACT  \nA financial market collapse is the failure of a financial organisation, whereas a stock market crash is usually characterised as a sudden, large decrease in the price of stocks or stock market indexes. A speculative bubble, in which prices increase unreasonably before overvaluation causes a fall, may set this off. A stock market collapse is specifically caused by the panic that hits the market as a result of an excessive number of sell orders executed at once. According to Econophysics, interrelated behaviours and newly forming patterns in the market system are what propel market crashes, which are seen as a component of a bigger cycle of stability and instability. This research outlines the study of stock market patterns using the Econophysics approach. There are various techniques for identifying and observing the stock market patterns, one of the techniques is to use Python programming to evaluate and possibly forecast stock market behaviour through predictive modelling, combining both machine learning and Econophysics insights. Hence, this research will be using Monte Carlo Simulation and identify which machine learning algorithm is suitable for predicting stock market patterns. By leveraging machine learning algorithms, such as Long Short-Term Memory (LSTM), the predictions generated closely follow the actual stock price movements for Inari Amertron Berhad. The predicted stock prices correctly reflect whether the market is moving upward or downward and they correspond with actual market trends. Furthermore , there is a strong correlation between the model’s buy or sell recommendations and the actual and anticipated price trends. In conclusion, the study of Econophysics principles with Python programming and machine learning algorithms has indicates that the predictive framework is reliable and effective in capturing stock price fluctuations, enhancing decision-making for investors based on data-driven insights.  \nKey Words: econophysics, stock market pattern, Python, machine learning, forecast  \n1. INTRODUCTION  \nThe potential of econophysics , an interdisciplinary science that combines economics and physics, to analyze intricate financial systems has drawn a lot of interest. Econophysics uses  \nideas from statistical physics and complex systems theory to examine market dynamics, providing a deeper understanding of speculative bubbles, market crashes, and stock price variations then traditional economic models, which rely on statistical techniques. This field improves market forecasts and risk assessments by identifying underlying patterns in financial markets using technologies such as computational modelling, network theory, and fractal analysis.  \nThis study integrates Long Short-Term Memory (LSTM) models and Monte Carlo simulations with Econophysics principes to enhance stock market prediction accuracy and uncover key market cycles, such as speculative bubbles and crashes. Treating the market asa complex system, it leverages Python tools like pandas, NumPy, and matplotlib for data processing and visualization. By combining machine learning with probabilistic modelling, this research provides valuable insights for traders and researchers while advancing Econophysics by bridging physics and finance for more reliable market forecasting.  \n2. LITERATURE REVIEW  \nTo overcome the constraints of conventional economic models, econophysics merges physics-based methods with financial market analysis. It developed during the second half of the 20th century and uses statistical physics, complex systems theory, and mathematical modelling to study market behaviour such as trends, trading volumes, and price fluc","cbCaijxzKK6Jn4gM","https://ap.wps.com/l/cbCaijxzKK6Jn4gM","pdf",543283,1,6,"English","en",105,"# ABSTRACT\n# 1. INTRODUCTION\n# 2. LITERATURE REVIEW\n# 3. METHODOLOGY","[{\"question\":\"What distinguishes a stock market crash from a stock market collapse in this study?\",\"answer\":\"A collapse refers to the failure of a financial organisation, while a crash is typically characterized by a sudden, large decrease in stock prices or stock market indexes.\"},{\"question\":\"How does Econophysics explain stock market crashes?\",\"answer\":\"Econophysics attributes crashes to interrelated behaviors and emerging patterns in the market system, viewing them as part of a wider cycle of stability and instability.\"},{\"question\":\"Which machine learning approach and simulation method are used for prediction?\",\"answer\":\"The study uses Monte Carlo Simulation and applies Long Short-Term Memory (LSTM) within a Python-based pipeline to predict stock market patterns and trends.\"}]","Machine Learning Predictions of Stock Market Pattern Using Econophysics Approach | PDF",1785684667,15,{"code":4,"msg":31,"data":32},"ok",{"site_id":24,"language":23,"slug":33,"title":13,"keywords":34,"description":14,"schema_data":35,"social_meta":86,"head_meta":88,"extra_data":90,"updated_unix":28},"machine-learning-predictions-of-stock-market-pattern-using-econophysics-approach","",{"@graph":36,"@context":85},[37,54,68],{"@type":38,"itemListElement":39},"BreadcrumbList",[40,44,48,51],{"item":41,"name":42,"@type":43,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":45,"name":46,"@type":43,"position":47},"https://docshare.wps.com/document/","Document",2,{"item":49,"name":12,"@type":43,"position":50},"https://docshare.wps.com/document/research-report/",3,{"item":52,"name":13,"@type":43,"position":53},"https://docshare.wps.com/document/machine-learning-predictions-of-stock-market-pattern-using-econophysics-approach/118644/",4,{"url":52,"name":13,"@type":55,"author":56,"headline":13,"publisher":58,"fileFormat":61,"inLanguage":23,"description":14,"dateModified":62,"datePublished":62,"encodingFormat":61,"isAccessibleForFree":63,"interactionStatistic":64},"DigitalDocument",{"name":9,"@type":57},"Person",{"url":41,"name":59,"@type":60},"DocShare","Organization","application/pdf","2026-08-02",true,{"@type":65,"interactionType":66,"userInteractionCount":4},"InteractionCounter",{"@type":67},"ViewAction",{"@type":69,"mainEntity":70},"FAQPage",[71,77,81],{"name":72,"@type":73,"acceptedAnswer":74},"What distinguishes a stock market crash from a stock market collapse in this study?","Question",{"text":75,"@type":76},"A collapse refers to the failure of a financial organisation, while a crash is typically characterized by a sudden, large decrease in stock prices or stock market indexes.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"How does Econophysics explain stock market crashes?",{"text":80,"@type":76},"Econophysics attributes crashes to interrelated behaviors and emerging patterns in the market system, viewing them as part of a wider cycle of stability and instability.",{"name":82,"@type":73,"acceptedAnswer":83},"Which machine learning approach and simulation method are used for prediction?",{"text":84,"@type":76},"The study uses Monte Carlo Simulation and applies Long Short-Term Memory (LSTM) within a Python-based pipeline to predict stock market patterns and trends.","https://schema.org",{"og:url":52,"og:type":87,"og:title":13,"og:site_name":59,"og:description":14},"article",{"robots":89,"canonical":52},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":92},[93,97,101,105,110,114,119,122,127,130,134],{"id":20,"doc_module":4,"doc_module_name":46,"category_name":94,"show_sort_weight":95,"slug":96},"Story & Novel",90,"story-novel",{"id":47,"doc_module":4,"doc_module_name":46,"category_name":98,"show_sort_weight":99,"slug":100},"Literature",80,"literature",{"id":53,"doc_module":4,"doc_module_name":46,"category_name":102,"show_sort_weight":103,"slug":104},"Exam",70,"exam",{"id":106,"doc_module":4,"doc_module_name":46,"category_name":107,"show_sort_weight":108,"slug":109},5,"Comic",60,"comic",{"id":21,"doc_module":4,"doc_module_name":46,"category_name":111,"show_sort_weight":112,"slug":113},"Technology",50,"technology",{"id":115,"doc_module":4,"doc_module_name":46,"category_name":116,"show_sort_weight":117,"slug":118},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":46,"category_name":12,"show_sort_weight":120,"slug":121},30,"research-report",{"id":123,"doc_module":4,"doc_module_name":46,"category_name":124,"show_sort_weight":125,"slug":126},9,"Religion & Spirituality",20,"religion-spirituality",{"id":125,"doc_module":4,"doc_module_name":46,"category_name":128,"show_sort_weight":125,"slug":129},"World Cup","world-cup",{"id":131,"doc_module":4,"doc_module_name":46,"category_name":132,"show_sort_weight":131,"slug":133},10,"Lifestyle","lifestyle",{"id":135,"doc_module":4,"doc_module_name":46,"category_name":136,"show_sort_weight":106,"slug":137},19,"General","general"]