Moving Average

A moving average is a statistical method used to analyze data points by calculating the average of a subset of values over a specific period or number of observations. As new data becomes available, the oldest data point is dropped, and the newest is included, creating a "moving" window. This technique helps smooth out short-term fluctuations, reveal trends, and identify pattern changes in data such as stock prices, sales figures, or temperatures. Essentially, it provides a clearer view of the overall direction of the data over a specified timeframe.