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Moving Averages

Moving Averages. OCR Stage 8. Why use them?. Moving Averages, when graphed, allow us to see any trends in data that are cyclical By calculating the average of 2 or more items in the data, any peaks and troughs are smoothed out. 265. 269.25. 265.25. 270.75. 4 Period Moving Average.

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Moving Averages

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  1. Moving Averages OCR Stage 8

  2. Why use them? • Moving Averages, when graphed, allow us to see any trends in data that are cyclical • By calculating the average of 2 or more items in the data, any peaks and troughs are smoothed out.

  3. 265 269.25 265.25 270.75 4 Period Moving Average

  4. 4 period Moving Average

  5. 500 x 400 x x 300 x x x x x x x x x x x x x x x 200 x x x 100 1 4 2 3 1 4 2 3 1 4 2 3 1998 1996 1997

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