Moving Averages

jewels.pjewels.p Font Of All KnowledgePosts: 1,774Registered
Can someone help me please?

On a three point moving average the first trend figure is put in the second line of the column but on a five point moving average the first trend figure is put in the third line of the column. I don't get this. Can anyone explain.:confused1:

Thanks

Comments

  • columbiacolumbia Experienced Mentor Posts: 580Registered
    Hi

    It is just the average distance between the numbers so a 3 point starts on the 2nd line and a 5 point on the 3rd line.

    ie;
    .
    . This would be the middle of the 3 point
    .

    .
    .
    . This would be the middle for the 5 point
    .
    .

    Hope this explains it!
  • jewels.pjewels.p Font Of All Knowledge Posts: 1,774Registered
    columbia wrote: »
    Hi

    It is just the average distance between the numbers so a 3 point starts on the 2nd line and a 5 point on the 3rd line.

    ie;
    .
    . This would be the middle of the 3 point
    .

    .
    .
    . This would be the middle for the 5 point
    .
    .

    Hope this explains it!

    Easier than I thought then. Thanks. U're good at this Unit have you already completed it?
  • columbiacolumbia Experienced Mentor Posts: 580Registered
    Hi

    No actually I haven't. I told my tutor I would pop in and do the skills test after the exams, but my mind needed a rest, so I did intend picking up the books again next week and getting this out the way before the exams results come in, as if I have any resists I don't want to also have to do Cash Management.
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