The moving average method calculates averages for subsets of data over a period of time to smooth out short-term fluctuations and highlight longer-term trends or cycles. For example, a two-year moving average is calculated by finding the average of years 1 and 2, then the average of years 2 and 3, and the average of years 3 and 4. Moving averages are typically plotted to visualize trends over time.

1. MOVING AVERAGE METHOD

2. A moving average
An average represents the “middling” value of a set of
numbers. The moving average is exactly the same, but the
average is calculated several times for several subsets of data.
For example, if you want a two-year moving average for a
data set from 2000, 2001, 2002 and 2003 you would find
averages for the subsets 2000/2001, 2001/2002 and
2002/2003. Moving averages are usually plotted and are best
visualized.