You can learn about relative reference in How to create an Excel absolute reference and relative reference. Select the cell near the 3 rd value and type the formula with the AVERAGE function referring the first 3 values. Let's say we have a data set of values in column and want to calculate moving averages by 3 data points. You can calculate SMA by taking the arithmetic mean of the previous set of values over a specified period.įor example, to calculate a moving average for 3 values, you need to find the average of previous 3 values including the corresponding value.Ĭalculating simple moving average by AVERAGE Functionīecause SMA refers the average of previous data points, you can use the AVERAGEfunction. In this guide, we’re going to show you how to calculate simple moving averages in Excel using three methods.ĭownload Workbook What is Simple Moving Average (SMA)?Īs the name suggests, this is the simplest form of a moving average. Moving average calculations is a common way of smoothing data to reduce the effects of random, short-term fluctuations.
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