A moving average is a statistical calculation used to analyze data points by creating averages of different subsets of the complete dataset. It helps smooth out short-term fluctuations and highlight longer-term trends or cycles. Commonly used in fields like finance and economics, moving averages can assist in making informed decisions based on historical data. There are various types of moving averages, including 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.