Trend lines

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Trend lines in Charts

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Trendlines in charts
A trend line is a straight line connecting
multiple points on a chart.

A trend is a movement in a...

Creating trendline in excel

 Select the graph and
right click

...

Trendline types

 A window opens with types
of trend line to select from 6
Options

 Select the default option
for tre...

Trendline

You can see the trendline now

Formatting trendline

 Right click on the trend line to
format it.

 Select style, color and weight
of your choice

Options - Name

-Trendline Name
- You can give custom name for
your trendline such as .. Sales
trend… etc.

Options - Forecast

 by using this forecast Option
you can extend the trend line
forward or backward to the
number of ...

Options - Forecast

 You can Observe that the trendline got
extended in to the future by 6 periods
 This denotes if t...

Options – Display equation and R2 Value

 by clicking “display equation
on Chart” and display r-Squared
value on chart...

equation

 This is the equation generated by excel that
holds the mathematical relationship of Sales and
months.

 This ...

R squared Value

 This is the R_squared Value for this trendline.

 This value denotes the reliability of the sales
proj...

R squared Value = 1

 Here the R_squared Value is 1.

 Just take a look at the sales progress.

 With every passing m...

Six types of trend lines

1. Linear
2. Logarithmic
...

Best fit Trendline
We have learnt that if R2 Value is near to 1, the
reliability of trendline is better.

So, now we ne...

Rule of thumb to use type of Trendline
1. Linear trendline : use it if data values are
increasing or decreasing at a ste...

Rule of thumb to use type of Trendline
4. Power trendline : Use with data that has
values that increase at specific rate...

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