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In order to improve the real time prediction precision of sensor output time series, the predictable inner mechanism of time series is analyzed, and a method using wavelet filtering and neural network is proposed. Sensor output time series are first handled with wavelet filtering, and then predicted by neural network method. The proposed method can eliminate effect of measurement noise on prediction precision. Simulation experiment shows a higher prediction precision by the method. A new idea is given to increase prediction precision of sensor output time series by neural network-based methods.