Why does my predicted value appear to lag the actual price by a few bars?
When predicting a desired output with change or percent change preprocessing, the neural network may find that the least error it can produce with the given inputs is to predict no change in price. This causes the predicted value to appear to lag the actual price by the number of bars associated with the prediction since it is predicting that no change will occur from the previous value. This is typically a sign that the neural network does not have enough information to produce a good model. Better results may be achieved with additional relevant inputs.
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- Why does my predicted value appear to lag the actual price by a few bars?
