# Algorithmic Trading: Normalization and Selection of Technical Indicators for Artificial Neural Networks [closed]

I study on algorithmic trading for a while based on technical indicators. I started to learn about neural networks and want to use technical trading indicators in this approach.

However, I am not sure how to normalize, read past questions, but there is no clear answer.

Is there anybody who can suggest a starting point?

• Even accounting for the upvotes to this question, I actually think it is either unclear or too broad. All that is really mentioned is "technical indicators", "normalize" and "neural networks". Since each of these terms contains a considerably wide scope I can't answer this, and that is also why I suspect you have found "no clear answer". I would suggest you reformulate this with more of a narrower focus on precisely what you are trying to achieve. – Attack68 Mar 5 at 12:29

2. Calculate the returns / percentage change of the indicator at each time step which will give you a scaled result between 0 and 1. i.e. (t2 - t1) / t1 where t1 is the signal at time step 1 and t2 is the signal at time step 2.