Smoothing is a statistical technique used to reduce noise and fluctuations in data, making it easier to identify trends and patterns. This process is commonly applied in various fields, such as finance, economics, and data analysis, to enhance the clarity of visual representations like graphs and charts. There are several methods of smoothing, including moving averages and exponential smoothing. These techniques help to create a more stable dataset by averaging out short-term variations, allowing analysts to focus on long-term trends without being distracted by random fluctuations in the data.