Single Moving Average (SMA)

Smooths historical data by averaging the last several periods and projecting the last average value forward. Predictor can automatically calculate the optimal number of periods to average, or you can select the number of periods to average.

This method is best for volatile data with no trend or seasonality. It results in a straight, flat-line forecast.

Figure 30. Typical Single Moving Average Data, Fit, and Forecast Line

Graph of single moving average historical and forecasted data