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
- Enter comma-separated data points in the input field.
- Click ‘Calculate’.
- 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
| Date | Price |
|---|---|
| Jan | $50 |
| Feb | $55 |
| Mar | $60 |
| Apr | $58 |
3-Month MA: ($50 + $55 + $60) / 3 = $55
Example 2: Sales Data
Data & Statistics
| Month | Sales | 3-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.
Bureau of Labor Statistics – Official source for economic data.
Investopedia – Comprehensive financial education.