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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