A moving average is a statistical calculation used to analyze data points by creating averages of different subsets of the data. It is commonly used in time series analysis, financial markets, and trend analysis to smooth out short-term fluctuations and highlight longer-term trends or cycles. There are several types of moving averages, including: 1. **Simple Moving Average (SMA)**: This is the most common type, calculated by taking the arithmetic mean of a specific number of recent data points.
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