Moving Average Trend of Forecasting


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Moving Average Trend of Forecasting

A centered moving average (MA) is obtained by summing and averaging the values from a given number of periods repetitively, each time deleting the oldest value and adding a new value.

 

MA =      ∑x/ Number of Period

 

A weighted moving average (MAw) allows some values to be emphasized by varying the weights assigned to each component of the average. Weights can be either percentages or a real number.

 

MAwt    =       ∑ (Wt)/∑Wt

 


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