Chapter 1

INTRODUCTION
The main objec-ve of this project is to empower investors by providing a comprehensive stock market
analysis and forecas-ng pla:orm that integrates fundamental and technical analyses, visualiza-on tools, and real-
-me news and recommenda-ons for informed decision-making.

1.1 Introduc,on
The project aims to provide comprehensive financial analysis and forecas-ng tools for investors
interested in the stock market. Leveraging a variety of Python libraries and financial APIs, the system offers
a wide array of func-onali-es, including fundamental analysis, technical analysis, -me series modelling, and
stock price forecas-ng.

One of the primary features of the project is fundamental analysis, which evaluates a company's financial
health and performance through key metrics such as debt-to-equity ra-o, price-to-book ra-o, and dividend
yield. This analysis helps investors make informed decisions about whether to buy, sell, or hold a par-cular
stock.

Addi-onally, the system incorporates technical analysis techniques such as moving averages, rela-ve
strength index (RSI), moving average convergence divergence (MACD), Bollinger Bands, and average true
range (ATR). These tools enable users to iden-fy trends, momentum, vola-lity, and poten-al reversal points
in stock prices, aiding in tac-cal trading strategies.

Moreover, the project integrates -me series modelling using autoregressive integrated moving average
(ARIMA) models to forecast future stock prices. By analysing historical price data, the system generates
forecasts along with confidence intervals, empowering investors with insights into poten-al future price
movements.

Furthermore, the project provides visualiza-on tools u-lizing libraries like Matplotlib, Plotly, and
Seaborn to create intui-ve charts and graphs, enhancing the interpretability of the analyzed data.

Overall, the project serves as a comprehensive pla:orm for investors to perform detailed analysis, gain
insights, and make data-driven decisions in the dynamic and compe--ve world of stock trading.
1.2 Problem Formula,on
The financial markets are characterized by complexity, vola-lity, and vast amounts of data. Investors face
challenges in making informed decisions due to the overwhelming volume of informa-on and the need for accurate
analysis. The primary problem addressed by this project is the lack of a unified and user-friendly tool that combines
fundamental and technical analysis with -me series forecas-ng for stock market investments. Investors oSen struggle
with iden-fying suitable stocks for their por:olios, considering factors like debt ra-os, valua-on metrics, and dividend
yields. Addi-onally, the absence of robust technical analysis tools makes it challenging to grasp short-term trends,
poten-al reversals, and entry/exit points. Moreover, forecas-ng stock prices accurately is a complex task that
demands a sophis-cated approach. Exis-ng tools may lack the integra-on of advanced -me series modelling
techniques, hindering the ability to predict future stock movements with confidence. Therefore, the project aims to
formulate a solu-on that amalgamates fundamental and technical analyses, along with advanced -me series
forecas-ng, into a cohesive pla:orm. This pla:orm addresses the challenges faced by investors in comprehensively
assessing and predic-ng stock market behaviour, providing a valuable resource for strategic decision-making in
financial investments.

1.3 Mo,va,on
In the dynamic landscape of financial markets, the need for a robust, all-encompassing tool is evident. Investors
require a comprehensive solu-on that seamlessly integrates fundamental analysis, technical indicators, and cuVng-
edge -me series forecas-ng. This project is mo-vated by the desire to empower investors with a single pla:orm that
simplifies complex financial data, aids in decision-making, and enhances their ability to navigate the complexi-es of
the stock market. The goal is to make financial insights accessible to both seasoned investors and those new to the
world of stock trading.

1.4 Proposed System

The proposed system integrates Python libraries and financial APIs to offer comprehensive stock market analysis and
forecas-ng. It includes fundamental and technical analysis tools, -me series modelling with ARIMA, visualiza-on
capabili-es, and features for fetching stock market news and recommenda-ons. This holis-c approach empowers
investors with -mely informa-on and insights, facilita-ng informed decision-making and strategic investment
planning.
1.5 Scope of the Project

The project aims to develop a versa-le pla:orm for stock market analysis and forecas-ng. It includes func-onali-es
such as fundamental and technical analysis, -me series modelling, visualiza-on tools, and integra-on with APIs for
fetching stock market news and recommenda-ons. The pla:orm aims to cater to investors of varying exper-se levels,
providing them with a comprehensive toolkit to make informed decisions and op-mize their investment strategies in
the dynamic stock market environment.

The project encompasses the development of a comprehensive stock market analysis and forecas-ng pla:orm with
the following components:

1. Fundamental Analysis: The system assesses a stock's financial health based on metrics like debt-to-equity ra-o,
price-to-book ra-o, and dividend yield.

2. Technical Analysis: U-lizing tools such as moving averages, RSI, MACD, Bollinger Bands, ATR, and OBV, the system
aids in iden-fying trends, vola-lity, and poten-al reversal points.

3. Time Series Modelling: ARIMA models are employed for forecas-ng future stock prices, providing insights into
poten-al price movements.

4. Visualiza9on: The pla:orm includes visualiza-on tools using libraries like Matplotlib, Plotly, and Seaborn for
crea-ng intui-ve charts and graphs.

5. News and Recommenda9ons: Integra-on with financial APIs allows the system to fetch stock market news and
recommenda-ons, providing users with -mely informa-on for decision-making.

6. User Interac9on: The system allows users to input a specific stock for detailed informa-on, analysis, and
forecas-ng.

7. Risk Analysis: The pla:orm calculates and visualizes vola-lity, risk vs. return, and Sharpe ra-o, aiding users in
assessing risk-adjusted performance.

The overall goal is to empower investors with a unified tool that combines various analyses, visualiza-on, and external
informa-on to facilitate well-informed decision-making in the stock market.
 1923ITP001

Chapter 2

LITERATURE SURVEY

2.1 Reference Papers

In the context of a project, a literature survey plays a crucial role in establishing the project’s scien-fic validity
and informing its design and implementa-on. By examining and synthesizing previous research and literature relevant
to the project’s objec-ves and methodology, the survey provides a theore-cal framework and establishes the
project’s context. This enables the project team to iden-fy and build on exis-ng knowledge, avoid duplica-on of
efforts, and address any gaps or shortcomings in the exis-ng research. Furthermore, a literature survey can help to
refine the research ques-on or project objec-ves, iden-fy poten-al challenges or limita-ons, and establish criteria
for measuring success.

A literature survey typically involves a systema-c search for relevant literature using appropriate keywords and
search terms, followed by a cri-cal evalua-on of the quality and relevance of the iden-fied literature. The survey
should be comprehensive and objec-ve, and the findings should be documented and referenced to ensure
transparency and accuracy. By leveraging the insights gained from a literature survey, project teams can improve the
quality and effec-veness of their research or development efforts, ensure the project’s relevance and impact, and
contribute to the advancement of knowledge in the field.

Literature Review

Dey, Roy, and Das [1] Technology alters peoples daily rou-nes, An android app is created to assist old individuals
who are unable to aid themselves, and this created system is used by people who live alone. This systems
implementa-on makes use of WIFI and an easy-to-use web server, both of which have the poten-al for future growth
when combined with improved sensors to boost sensor precision (like up to street Nights)

Sunehra and Ramana [2] Users can access household equipment at any -me by connec-ng to the network
and controlling them as necessary. This system also offers security as it sends an email no-ce to the user when it
detects an intruder or person The system is operated via a web page and a telegram bot.

Secure Home Automa-on using Raspberry Pi by Telegram app 3

 Kadali, Prasad, Kudav, et al.[3] Home automa-on system that combines many technologies, such as the

Internet of Things. The primary benefit of this system is that it offers users both text and voice communica-on op-ons.
A chat bot applica-on will be used for the users text input, and a voice assistant will be used for the users voice input.

Biswas and Mynuddin [4] Three levels of security have been guaranteed. Use of NFC tags with a PIR mo-on
sensor and a password. The door wont open if one of them isnt there. A lock is ajached to the shaS of the
servomotor that will be used to unlock the door. When the incorrect password is entered, the LCD shows error text.

Kodali, Jain, Bose, et al. [5] By managing and interac-ng with remote control of home appliances, the IOT

offers a comfortable way of living to people. Two Node MCUs are present in the proposed system. The Node MCU
(Node micro controller unit) is an open-source device that combines hardware and soSware to create a far less
expensive system based on the ESP8266 chip.

Dash and Choudekar [6] While an automated home can be referred to or classified as a smart home, a
wireless home automa-on system employing the internet of things employs computers or mobile devices to operate
features automa-cally through the internet from anywhere in the globe.

Nakrani, Panchal, Thakkar, et al. [7] These systems oSen include a detec-ng and actua-on layer made up of

passive infrared sensors, also referred to as mo-on sensors, and web cameras for security.

Reddy, Cheerla, Inthiyaz, et al. [8] In this system, devices including ligh-ng, fans, and camera access are

employed. Any internet-capable device, such as a smart phone or laptop, may be used to control home appliances
thanks to an Android applica-on and a Telegram bot. Addi-onally, the proposed system offers home security by using
a camera that can send photos via a Telegram bot message when no one is home.

Satapathy, Bas-a, and Mohanty [9] To serve as a connec-vity module to show the systems
CHAPTER 2. LITERATURE SURVEY 1923ITP001

effec-veness and viability. It enables the user to remotely manage a variety of appliances, including lights, fans, and
televisions, as well as make decisions based on sensor feedback on various environmental factors.

Rao, Vinod, Priyanka, et al. [10] The study is primarily focused on IOT-based home automa-on u-lising a

wireless raspberry PI system. IOT enables us to control basic home appliances automa-cally via the internet from
anywhere in the world using PCs or mobile devices.

Hema and Yadav [11] These days, everything moves at supersonic speeds, and digital media allows for data
to be exchanged at the speed of light. Therefore, u-lising Internet protocols, informa-on must come in at the same
rate.

Desai and Pawar [12] The IoT is at its height in the modern world. As the world becomes smarter, home
automa-on is star-ng to take off. One of the newest technologies in home automa-on is smart door control. This
study seeks to expand the door automa-on method u-lising a Raspberry Pi and an Android device.

kh Shakthi and Abishiek et. al [13] A smart home is a networked associa-on of automa-on and management for
extraordinary living. Home security is crucial in this regard, becoming a crucial aspect of our lives.

Reeta [14] The facial recogni-on technology works by first taking a picture with a camera. The snippet of
code recognises an individuals characteris-cs. Using a Raspberry Pi, the captured image is compared to the database
of photos aSer being detected. The faces are then compared to see if they match or not. ASer that, if an intruder tries
to enter the premises, the SIM300 GSM module transmits a security alert to the designated person.

Pallavi et al. [15] Our project aims to create devices that are simple to operate, including home applica-ons

and other devices. Using an applica-on on a cell phone with an Android, iOS, or Windows opera-ng system installed,
we may operate fans, air condi-oners, lights, and other appliances.

Amri and Se-awan [16] Email was the basis on which the smart home was formed. This research examined
a home security system that iden-fies facial pajerns to allow access. Cameras and a BeagleBone are used in this
system. Email was used by the system to interact with users.

Anvekar and Banakar [17] The database contains pictures of people who have been granted approval. The camera
records the face of the person who rings the doorbell when they approach the door and compares it to previously
recorded photographs in the database. The door unlocks if the image is a match with the one being captured at the
moment. If it fails, the user receives the captured face.

Secure Home Automa-on using Raspberry Pi by Telegram app 5

CHAPTER 2. LITERATURE SURVEY 1923ITP001

Kumar and Mijal [18] The system includes a backup in case there is a power outage issue. The power backup
devices are switched in place of the main supply, and they con-nue to power the security system.

Demir, S¸ ims¸ek, Gur,¨ et al. [19] The goal of their future study is to create an anonymous secure framework

(ASF) for smart homes. The ASF model focuses on session key progression and rou-ne key renewal to get rid of any
faults brought on by a compromised key. Although this model offers unlinkability and anonymity,it is missing the
property of anonymous iden-fica-on.

Taiwo and Ezugwu [20] The smart home is now an established area of interest and research that contributes
to comfort in modern homes. With the Internet being an essen-al part of broad communica-on in modern life, IoT
has allowed homes to go beyond building to interac-ve abodes. In many spheres of human life, the IoT has grown
exponen-ally, including monitoring ecological factors, controlling the home and its appliances.

Table 2.1: Literature Study

R. TITLE Year METHODOLOGY LIMITATIONS

No.

“Secure home entry using

raspberry pi with no-ficat ion Arduino, Relay, Led, Fan, Node Security, privacy, and design ing,
[1] via telegram” N. Hema and J. 2021 MCU is used for developing the system is very
Yada complex
automa-on

SMTP server upda-on can be

Three 2-channel relays, two delayed as usage Of Raspberry Pi
“Webpage And Telegram Bot fans and 2 light ,elec makes it more complex as detec-on
Controlled Home Aut oma-on of Introdu-on Send mail. (It can be
2 2020 tromagne-c door lock, The
System using raspberrypi3” D. enchanced further)
Suneha and G.V Ramana PIR Sensor ,
GPIO pins

Secure Home Automa-on using Raspberry Pi by Telegram app 6

CHAPTER 2. LITERATURE SURVEY 1923ITP001

Raspberry Pi NLP unit: natural

language pro cessing Spoken-
to-text conversion will be
applied to the Voice Assistant
module’s speech input. The system can be further made
processing, hence pro viding a inclusive of extensions such as
“Home Automa-on Using Chat text input to the NLP module, ajaching of email services as an
bot And Voice Assis tant The en-re processing of the alternate form of message delivery,
[3] 2020 acquired input happens in this
”B.Kadali,N.prasad, p.Kudav and in situ a-ons of utmost importance.
Manoj unit. The number of devices that can be
connected to the sys tem can not be
expanded to a larger range.

PIR sensor, pin, servo motor

,buzzer ,VDD ,VSS ,power
“Design And Implementa -on supply crystal osci llator set of
authorized person data Developing the system is very
Of Smart Home Secur ity
[4] 2020 microcontr oller sends signal complex which leads to not
System” P. Biswas and to servo motor reachong all the features.
M.Mynuddi

“Iot Based Smart Security by Remotely controlled room

And Smart Automa-on” temperature, automa-c fans,
R.K,Kodali V.Jain, S.Bose and Security ,privacy, and de signing,
[5] 2020
L.Boppana and automa-c developing, manag ing the system .
lights

Drivers/devices, sen sors, Wi-

Fi router mobile
“Home Automa-on And Se ESP8266 node MCU WiFi This concept combines home
[6] curity Using Iot”Dash and 2020 Module, Relay Module, DHT11, automa-on and security, both of
P.Choudehar Current Sensor configure which are necessary nowadays.
ESP8266 .

“A review internet of things NodeMCU , ArduinoNano ,

based smart home autom Relay LCD , DHT11 sensor
a-on” V.Nakrani , M.Pan chal
MQ9 Gas sensor ,Touch , IoT digital code lock security is
[7] D.Thakkar ,s.pedne kar and Y. 2021
provided as an advanced feature.
Mane Sensor, Buzzer Opera-on
Voltage,

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CHAPTER 2. LITERATURE SURVEY 1923ITP001

“Face recogini-on and ho me

automa-on using tele gram
Telegram , Telegram bot, Bot
bot”V.S.Reddy, S.Cheerla,S.I Computer vision can be used for
Father , The Rasp berry Pi ,
[8] nthiyaz, and V.Chakravarthy 2019 mo-on detec-on and aler-ng
Temperature sensor DHT11, Pi
through telegram
Cam

reducing the -me it takes an

appliance to switch on and off,
Adding speech recog ni-on to the
“Arduino Based Home Arduino UNO , 4-Channel
system, u- lising Wi-fi to detect
Automa-on Using Internet Relay , ESP8266-01, smart phones automa-cally so that
[9] 2019 WIFI, Gas Sensor , Tem perature the loads are ac-vated when they
Of Things ”L.M.Satapathy are in range, Wi-Fi range
Sensor, SoSware Design ,
S.K.Bas-a and N.Mohanty Implementa-on ,

Raspberry pi , Voltages ,

“Iot Based Web Controlled SPI , I2C, Serial, Camera , Pir

sensor , Relay mod ule, Digital
Home Automa-on Using
[10] 2019 humidity and temperature
Raspberry Pi” G. Rao sensor , door sensor
Security ,privacy, and designing
A.Vinod and Priyanka
,developing the system is very
complex

Telegram protocol, Remote

Support, Mee-ngs Prese SMTP server upda-on can be
nta-ons, Remote Access
“Secure home entry using delayed as usage Of Raspberry Pi
Remote Office Remote Ho me,
raspberry pi with no-ficat ion Home electronics unit (HEU) , makes it more complex as detec-on
[11] 2019
via telegram ” N.Hema and Telegram applicat ion unit of Intruduc-on
J.yadav (TAU),
Send mail. (It can be enchan ced
further)

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CHAPTER 2. LITERATURE SURVEY 1923ITP001

The system can be further made

inclusive of extensions such as
ajaching of email services as an
alternate form of message delivery,
“Smart Door Security System Raspberry pi B3 , PIR in situ a-ons of utmost importance.
The number of devices that can be
Using Raspberry Pi Sensor , Camera Module , connected to the sy stem can not be
[12] 2019
With Telegram”Desai, Wi-Fi Module .Telegram expanded to a larger range.
Virendra App

“Advanced Smart Home Se

curity Alert System”
facial recogni-on, Raspb erry Developing the system is very
[13] S.M.KH.K.Sumathi, V.mona 2019 Pi 3, camera module , door complex which leads to not
,I.M,Elias and S. lock, automa- on, security reachong all the features

M.Raj

The development of an inter ac-ve

smart home securi ty system with
the raspber ry pi, Web-based
“Smart Secure Door Lock
IoT, Wi-Fi modem, relay, control systems and using the
[14] System Using Iot And Eige nface 2018
Python, Eigenface, Rasp berry Pi Eigenf ace technology
Approach” Reeta R

Home automa-on, Home

“Controlling smart Home security, Internet of Things,

Computer vision can be used for
[15] Automa-on using raspber 2018 Python language, mo-on detec-on and aler-ng
-ry pi” Raspberry Pi3, Android, through telegram.

Telegram Bot

“Improving Smart Home Improve home security The system

Concept With The Internet does not require a great power
Raspberry Pi ,NodeMCU, rain Users can control and monitoring
[16] Of Things Concept Using 2018 sensor, door sensor, passive the house remotely
Raspberry pi And Nodemc u”Y infrared sensor (PIR), DHT22
.Amri abd Se-awan

”Iot applica-on developme nt facial recogni-on, Raspberry Pi

:Home security system” 3,camera module, door lock, Developing the system is very
[17] R.G.Anvekat and R.M.Ban akar 2018 automa-on, security complex which leads to not
reachong all the features..

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CHAPTER 2. LITERATURE SURVEY 1923ITP001

“A Novel Design And Impl This security system has gene ric
ementa-on Of Smart Hom concept and implementa-on with
Security, sensors, Internet of effec-ve GSM to no-fy user with
[18] eSecurity System: Future 2017 Things (IOT), and GSM (Global message with raising alarm.
Perspec-ve”R .Kumarand System Mobile Communica-on)

P .Mijal

“Secure and privacy preserving

iot gateway for home Security ,privacy, and de signing,
automa-on ”S.Demir, IoT device, Vendor, Nonce with
[19] 2017 developing, manag.
S.simsek,S.gur and A.levi iden-fier
ing the system

The home automa-on system

allows remote and local cont rol of
the home. The system controls
electrical home appli ances,
“Internet Of Things-Based monitors environment al condi-ons

IntelligentmSmart Home sensors, an ESP32-CAM board, a through temper ature, humidity,

[20] 2017 5 V, 4-channel relay module, and light sen sors, and ensures
Control System” Olutosin and an ESP8266 board. home secur ity through a mo-on
Taiwo and Absalom sensor and an IoT camera

2.2 Used So>ware Installa,ons

2.2.1 Open CV
OpenCV is a Python library that allows you to perform image processing and computer vision tasks. It provides a
wide range of features, including object detec-on, face recogni-on, and tracking.

OpenCV is an open-source soSware library for computer vision and machine learning. The OpenCV full form
is Open Source Computer Vision Library. It was created to provide a shared infrastructure for applica-ons for
computer vision and to speed up the use of machine percep-on in consumer products. OpenCV, as a BSD-licensed
soSware, makes it simple for companies to use and change the code. There are some predefined packages and
libraries that make our life simple and OpenCV is one of them

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CHAPTER 2. LITERATURE SURVEY 1923ITP001

2.3 Computer Vision

The term Computer Vision (CV) is used and heard very oSen in ar-ficial intelligence (AI) and deep learning (DL)
applica-ons. The term essen-ally means giving a computer the ability to see the world as we humans do

2.4 Open CV working process

2.4.1 How does computer recognize the image

Human eyes provide lots of informa-on based on what they see. Machines are facilitated with seeing everything,
convert the vision into numbers and store in the memory. Here the ques-on arises how computer convert images
into numbers. So the answer is that the pixel value is used to convert images into numbers. A pixel is the smallest unit
of a digital image or graphics that can be displayed and represented on a digital display device

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CHAPTER 2. LITERATURE SURVEY 1923ITP001

Figure 2.1: Computer vision

The picture intensity at the par-cular loca-on is represented by the numbers. In the above image, we have shown
the pixel values for a grayscale image consist of only one value, the intensity of the black color at that loca-on.
There are two common ways to iden-fy the images:

1. Grayscale Grayscale images are those images which contain only two colors black and white. The contrast
measurement of intensity is black treated as the weakest intensity, and white as the strongest intensity. When
we use the grayscale image, the computer assigns each pixel value based on its level of darkness.

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CHAPTER 2. LITERATURE SURVEY 1923ITP001

2. RGB An RGB is a combina-on of the red, green, blue color which together makes a new color. The computer

retrieves that value from each pixel and puts the results in an array to be interpreted.

Figure 2.2: RGB recogni-on

2.5 Advantage of computer vision

1. OpenCV is available for free of cost.

2. Since the OpenCV library is wrijen in C/C++, so it is quit fast. Now it can be used with Python.

3. It require less RAM to usage, it maybe of 60-70 MB.

4. Computer Vision is portable as OpenCV and can run on any device that can run on C.

2.6 Face recogni,on and Face detec,on using the OpenCV

The face recogni-on is a technique to iden-fy or verify the face from the digital images or video frame. A human can
quickly iden-fy the faces without much effort. It is an effortless task for us, but it is a difficult task for a computer.
There are various complexi-es, such as low resolu-on, occlusion, illumina-on varia-ons, etc. These factors highly

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CHAPTER 2. LITERATURE SURVEY 1923ITP001

affect the accuracy of the computer to recognize the face more effec-vely. First, it is necessary to understand the
difference between face detec-on and face recogni-on.
Face Detec9on: The face detec-on is generally considered as finding the faces (loca-on and size) in an image and
probably extract them to be used by the face detec-on algorithm.

Face Recogni9on: The face recogni-on algorithm is used in finding features that are uniquely described in the
image. The facial image is already extracted, cropped, resized, and usually converted in the grayscale.

There are various algorithms of face detec-on and face recogni-on. face detec-on using the HAAR cascade
algorithm.

Secure Home Automa-on using Raspberry Pi by Telegram app 14

Chapter 3

SYSTEM DESIGN AND ANALYSIS

3.1 System Architecture

A face recogni-on door lock system is a security system that uses facial recogni-on technology to iden-fy
authorized individuals and grant them access to a locked area or door. The system captures an image of the person’s
face, compares it to a database of authorized individuals, and unlocks the door if there is a match. The system can be
used in various seVngs, including homes, offices, and public spaces, to enhance security and prevent unauthorized
access. The system is reliable and convenient, elimina-ng the need for tradi-onal keys or access cards, and reducing
the risk of security breaches.

Figure 3.1: Architecture Diagram for Secure Home Automa-on

16

3.2 Block Diagram

In this proposal to increase the interac-on with home security system various addi-onal modules like image
processing and Telegram are used.
CHAPTER 3. SYSTEM DESIGN AND ANALYSIS 1923ITP001

Figure 3.2: Block Diagram for Secure Home Automa-on

3.3 DFD Diagrams

3.3.1 DFD Diagram

A Data Flow Diagram (DFD) is a tradi-onal visual representa-on of the informa-on flows within a system. A neat and
clear DFD can depict the right amount of the system requirement graphically. It can be manual, automated, or a
combina-on of both. It shows how data enters and leaves the system, what changes the informa-on, and where data
is stored. The objec-ve of a DFD is to show the scope and boundaries of a system as a whole. It may be used as a
communica-on tool between a system analyst and any person who plays a part in the order that acts as a star-ng
point for redesigning a system. The DFD is also called as a data flow graph or bubble chart.

3.3.2 Levels in Data Flow Diagrams (DFD)

The DFD may be used to perform a system or soSware at any level of abstrac-on. Infact, DFDs may be par--oned
into levels that represent increasing informa-on flow and func-onal detail. Levels in DFD are numbered 0, 1, 2 or
beyond. Here, we will see primarily three levels in the data flow diagram, which are:

1. 0-level DFD

2. 1-level DFD

3. 2-level DFD

0-level DFD:

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CHAPTER 3. SYSTEM DESIGN AND ANALYSIS 1923ITP001
It is also known as fundamental system model, or context diagram represents the en-re soSware requirement
as a single bubble with input and output data denoted by incoming and outgoing arrows.
Then the system is decomposed and described as a DFD with mul-ple bubbles. Parts of the system represented by
each of these bubbles are then decomposed and documented as more and more detailed DFDs.
This process may be repeated at as many levels as necessary un-l the program at hand is well understood. It is
essen-al to preserve the number of inputs and outputs between levels, this concept is called leveling by DeMacro.
Thus, if bubble ”A” has two inputs x1 and x2 and one output y, then the expanded DFD, that represents ”A” should
have exactly two external inputs and one external output

Figure 3.3: Context level for Secure Home Automa-on

It represents the methodology used in system analysis to iden-fy, clarify and organize system requirements.

1-level DFD

In 1-level DFD, a context diagram is decomposed into mul-ple bubbles/processes. In this level, we highlight the main
objec-ves of the system and breakdown the high-level process of 0-level DFD into subprocesses.

At Level 1 of a DFD, the diagram provides an overview of the en-re system or process, including all major
inputs and outputs. It shows the main func-ons or processes that are involved, as well as the data that flows between
them. The Level 1 DFD provides a good star-ng point for understanding the system or process, and can be used to
iden-fy areas for improvement or op-miza-on.

The Level 1 DFD is oSen used as a basis for developing more detailed diagrams, such as Level 2 or Level 3
DFDs, which break down the system or process into more detailed components and interac-ons. Overall, the DFD is
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CHAPTER 3. SYSTEM DESIGN AND ANALYSIS 1923ITP001
a useful tool for analyzing and understanding complex systems, and can be used in a variety of contexts, including
soSware development, business process analysis, and systems engineering.

Figure 3.4: LEVEL1 for Secure Home Automa-on

2-level DFD

2-level DFD goes one process deeper into parts of 1-level DFD. It can be used to project or record the
specific/necessary detail about the system’s func-oning.

In DFD modeling terms we talk of the context diagram as the “parent” and the level 1 diagram as the “child”.
This same process can be applied to each process appearing within a level 1 DFD. A DFD that represents a decomposed
level 1 DFD process is called a level 2 DFD.
A Data Flow Diagram (DFD) Level 2 is a type of diagram that provides a more detailed view of a specific
process or subsystem within a system or process that was depicted in the Level 1 DFD. Level 2 DFDs break down the
high-level processes or func-ons iden-fied in the Level 1 diagram into more specific and detailed components,
showing how data moves through the system at a more granular level.
At Level 2, the DFD focuses on a single process or subsystem and shows the inputs, outputs, and processing
steps involved in that specific area. The Level 2 DFD will show more detail than the Level 1 DFD, including any sub-
processes or tasks that are involved in the system. The data flows shown in the Level 2 diagram should align with the
data flows iden-fied in the Level 1 DFD.
The Level 2 DFD can be used to iden-fy any poten-al bojlenecks or inefficiencies in the system, as well as to
help iden-fy areas where changes or improvements could be made. It is oSen used as a basis for developing even
more detailed diagrams, such as Level 3 DFDs or flowcharts, which provide an even more detailed view of the specific
process or subsystem.
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Figure 3.5: LEVEL 2 for Secure Home Automa-on

3.3.3 ER Diagram
ER model stands for an En-ty-Rela-onship model. It is a high-level data model. This model is used to define the data
elements and rela-onship for a specified system.

• It develops a conceptual design for the database. It also develops a very simple and easy to design view of data.

• In ER modeling, the database structure is portrayed as a diagram called an en-ty-rela-onship diagram.

• En-ty

• Ajribute

• Rela-onship

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CHAPTER 3. SYSTEM DESIGN AND ANALYSIS 1923ITP001

Figure 3.6: ER Diagram for Secure Home Automa-on

3.3.4 Control Flow

Control flow tes-ng is a tes-ng technique that comes under white box tes-ng. The aim of this technique is to
determine the execu-on order of statements or instruc-ons of the program through a control structure. The control
structure of a program is used to develop a test case for the program. In this technique, a par-cular part of a large
program is selected by the tester to set the tes-ng path. It is mostly used in unit tes-ng. Test cases represented by
the control graph of the program.

Nota9ons used for Control Flow Graph

1. Node

2. Edge

3. Decision Node

4. Junc-on node

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