How to Calculate a Moving Average in Excel
Smooth out noisy daily numbers with a 3-day and 7-day moving average, then compare them to spot momentum.
You will learn to
- Average a sliding window of recent rows
- Build a 7-day moving average
- Compare a short and long average to read momentum
How it works
A moving (rolling) average smooths out day-to-day noise so you can see the underlying trend. A 3-day moving average on row 4 is simply =AVERAGE(B2:B4); filled down, the window slides one row at a time because both ends of the range are relative.
Longer windows (7 days, 30 days) are smoother but slower to react. Analysts often compare a short average with a long one: when the short-term average rises above the long-term average, demand is accelerating; when it drops below, things are cooling off.
=AVERAGE(B2:B4)