A Moving Average is a statistical calculation used to analyze data points by creating averages of different subsets of the full data set. It helps smooth out short-term fluctuations and highlight longer-term trends or cycles. This technique is commonly used in fields like finance, economics, and weather forecasting.
There are different types of moving averages, such as the Simple Moving Average (SMA) and the Exponential Moving Average (EMA). The SMA calculates the average of a set number of data points, while the EMA gives more weight to recent data, making it more responsive to new information.