Supposing you have a list of average monthly temperatures in column B, and you want to find a moving average for 3 months (as shown in the image above). Calculate moving average for a certain time periodĪ simple moving average can be calculated in no time with the AVERAGE function. The following examples demonstrate both techniques. Overall, there are two ways to get a simple moving average in Excel - by using formulas and trendline options.
In this tutorial, we will be looking into the most commonly used simple moving average.Ĭalculating simple moving average in Excel There exist different types of moving average such as simple (also known as arithmetic), exponential, variable, triangular, and weighted. In business, it's a common practice to calculate a moving average of sales for the last 3 months to determine the recent trend.įor example, the moving average of three-month temperatures can be calculated by taking the average of temperatures from January to March, then the average of temperatures from February to April, then of March to May, and so on. In stock trading, moving average is an indicator that shows the average value of a security over a given period of time.
It is frequently used in statistics, seasonally-adjusted economic and weather forecasting to understand underlying trends. Generally speaking, moving average (also referred to as rolling average, running average or moving mean) can be defined as a series of averages for different subsets of the same data set.
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