Financial Forecasting in Financial Mgt..

Financial forecasting involves predicting a company's future financial performance based on historical data, market trends, and economic conditions. This process helps businesses make informed decisions about budgeting, investment, and resource allocation. By analyzing past revenue, expenses, and market variables, organizations can develop projections for cash flow, profits, and growth, enabling them to strategize effectively and mitigate risks. Accurate financial forecasting is crucial for maintaining operational stability and achieving long-term objectives.

1. New FINANCIAL FORECASTING USING ELLIOTT WAVES AND HURST CYCLES APPROACH

2. INTRODUCTION
•Financial Forecasting:
•A financial forecast is a financial plan or budget for a business. A financial forecast is derived by trying to estimate two things.
 
•The a income that the business is expected to receive and the expenses that it is expected to have to pay.
  Of course, it is
impossible to know for sure how much income a business will get or how much its expenses will be.
  However,
it is possible to make educated guesses on these issues.
  These guesses make up a financial forecast.
•While financial forecasts are not likely to be perfect, they are important.
  There are two main reasons why it is important for
a business to engage in financial forecasting.
 
•First, financial forecasting allows a business to plan ahead.
  Imagine, for example, that you work for an airline.  One of the
major expenses that an airline incurs is the price of fuel.
 
• If you foresee that fuel costs will rise dramatically two years from now, you will want to take steps to raise revenues to offset
the cost increases that you are predicting.
•This cause for a good techniques we need to use to study the trend of the market before forecasting can be analyze
which will then attract investors invest into the market

3. ELLIOTT WAVES PRINCIPLES
•The Elliott waves principles is used in analyze the trend of the market
and explain that the market moves in repetitive cycles which reflect
the actions and emotions of humans caused by mass psychology.
• Elliott wavs definition make emphasis to the law of nature or physical
law which is stated that to Every actions trend creates an equal and
opposite reaction. The same goes for the financial markets. A Price
moves up and down.

4. Price movements:
•. Trend: which shows the directions of the prices, the technical word
use is impulse waves
•. Corrections : which moves against the trends ,the technical word
use is corrective waves.

5. STRUCTURES OF THE WAVES

8. FIRST TASK
•The First Task is to understand the Elliott waves principles and how it
works in the stock exchange market.
. secondly how it is implement in python language.

9. HURST CYCLES
•What is cycle?
•A cycle is something that influences the price movement of a financial market to
move up towards a peak, and then to move down towards a trough (or low point).
It repeats that action on a fairly regular basis .
•The distances between any two troughs of the cycles is called the wavelength of
the cycle. There are many cycles which influences the prices of financial market
(Multiple cycles)
• The cycles that causes financial markets to move up and down affect those
financial markets twenty- four hours in day ,seven day in week and 365 days in a
year .

10. STRUCTURES OF HURST CYCLES

13. Second task :
•To understand concept of Hurst cycles and how it is use as a
Forecasting tool in stock market .

15. • The main goal of this project is to combine Elliott waves and Hurst
cycles and use it as forecasting tool to determine the behavior of the
market trend either it is bullish or bearish market in other to attract
investors to invest in the stock exchange market.