Moving average is also called Simple Moving Average(SMA) is widely used technique to find the direction of the trend form the past data.It is widely used for forecasting long term trends.
We will calculate moving average for three years with the below data set.
Three years moving average for the above data set means we need to find the average(mean) for the three years as shown below
Chart for our actual observations and Moving Average
A 3-day simple moving average is the three day sum of closing prices divided by three
Data and Machine by viswateja 