Merits and Demerits of Moving Average Method


Moving averages can be used for measuring the trend of any series. The method is applicable for linear as well as non-linear trends.


The trend obtained by moving averages is, in general, neither a straight line nor some standard curve. For this reason the trend cannot be extended for forecasting the future values. Trend values are not available for some periods in the start and some values at the end of the time series. The method is not applicable for short time series.