MA (Moving Average)

Information

• MA (Moving Average) is a time series forecasting method that involves calculating the average of past data points over a sliding time window.
• The size of the window is typically fixed and determines how many past data points to include in the calculation.
• The goal of MA is to identify patterns or trends in the data that are difficult to observe with raw data.
• It is a simple and widely used method that can be used for both short-term and long-term forecasting.
• MA is commonly used in finance, economics, and other fields that require time series analysis.
• MA can be combined with other forecasting methods, such as exponential smoothing, to improve the accuracy of the forecasts.
• One limitation of MA is that it assumes a constant trend in the data and may not perform well in the presence of sudden changes or irregular patterns.
• MA can also be sensitive to outliers and noise in the data and may require pre-processing or smoothing to improve its performance.