Calculate A Forecast Using A Simple Three-Month Moving Average

Three-Month Moving Average Calculator

Expert Guide to Three-Month Moving Average

Introduction & Importance

Three-month moving average is a technical analysis indicator that helps smooth out price data by creating a constantly updating average price. It’s widely used in finance and economics to identify trends and make informed decisions.

How to Use This Calculator

  1. Enter comma-separated data points in the input field.
  2. Click ‘Calculate’.
  3. View the results and chart below.

Formula & Methodology

The three-month moving average is calculated by taking the average of the closing prices over the past three months. The formula is:

3-Month MA = (Sum of closing prices over the past 3 months) / 3

Real-World Examples

Example 1: Stock Prices

DatePrice
Jan$50
Feb$55
Mar$60
Apr$58

3-Month MA: ($50 + $55 + $60) / 3 = $55

Example 2: Sales Data

Data & Statistics

MonthSales3-Month MA

Expert Tips

  • Use the moving average in conjunction with other indicators for better accuracy.
  • Be aware that moving averages lag behind current prices.

Interactive FAQ

What is a moving average?

A moving average is a technical analysis indicator that helps smooth out price data by creating a constantly updating average price.

Three-month moving average calculation Stock chart with moving average

Bureau of Labor Statistics – Official source for economic data.

Investopedia – Comprehensive financial education.

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