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Feature Engineering

Feature Engineering

Feature engineering is the process of creating new variables that improve a machine learning model’s ability to identify patterns.

For this project, two engineered features are created:

Feature 1

Difference between opening and closing prices.

Open − Close

Feature 2

Difference between highest and lowest prices.

High − Low

These features summarize daily market movement and volatility, making them useful predictors for stock price forecasting.

Well-designed features often improve prediction accuracy more than simply increasing model complexity.