Moving average
Last updated August 16, 2023
What is moving average?
Moving Average is a simple that calculates the average of a specified number of previous observations to predict future values. It assumes that future values will follow a similar pattern as the past observations.
What are the key steps?
- Define a window size (e.g., 3, 5, or 7) that represents the number of previous observations to consider
- Calculate the average of the values within the window
- Slide the window by one observation and repeat the calculation to generate predictions for subsequent time periods