moving average Meaning in the Cambridge English Dictionary Cambridge dictionaries logo

Meaning of “moving average” in the English Dictionary

"moving average" in Business English

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moving averagenoun [C]

uk   us  
an ​average that is ​calculated by using the ​average of several ​periods of ​time up to the ​present. A ​movingaveragechangesregularly, with the earliest ​amount being ​replaced with the ​amountbased on the most recent ​data: Month-by-month ​figures are notoriously ​volatile, whereas a ​movingaveragesmooths out the ​effects of the ​businesscycle.a four-week/three-month/10-year, etc. moving average Volumes were ​heavy, ​reaching 4.4m ​shares, compared with the 15-day ​movingaverage of 2.6m.
(Definition of moving average from the Cambridge Business English Dictionary © Cambridge University Press)
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