LOESS stands for "Locally Estimated Scatterplot Smoothing." It is a statistical method used to create a smooth curve through a set of data points. By fitting simple models to localized subsets of the data, LOESS can effectively capture trends without assuming a specific global model. This technique is particularly useful for visualizing relationships in data that may be nonlinear or have varying patterns. It is commonly applied in fields like economics, environmental science, and social sciences to analyze complex datasets and reveal underlying trends that might not be apparent through traditional linear regression methods.