What is moving average conceptually?

< 1 min read

Moving average is a method that smooths time-series data by averaging values over a fixed period.
In one project, we used a 7-day moving average to reduce daily sales volatility.
It highlights underlying trends by minimizing short-term fluctuations.
It can be calculated as simple, weighted, or exponential moving average depending on needs.
Moving averages help in identifying trend direction and momentum.
They are often used in forecasting and anomaly detection.
As a BA, it helps present clearer insights to stakeholders without noise from daily variation.
Overall, it makes patterns in sequential data easier to interpret and act on.

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