Advantages and Disadvantages of the Moving Average Method


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


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