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How many periods can you use for an n period moving average?

User Uerschel
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Final answer:

The number of periods you can use for an n-period moving average depends on the length of the data set and the desired level of smoothing or sensitivity to changes.

Step-by-step explanation:

An n-period moving average is a mathematical calculation used to analyze trends over time. It involves taking the average of a set of data points over a specific number of periods or time intervals. The number of periods you can use for an n-period moving average depends on the length of the data set and the desired level of smoothing or sensitivity to changes. For example, if you have daily data for a year and want to calculate a 5-day moving average, you can use a maximum of 252 (365 - 5 + 1) periods. This is because you need a minimum of 5 data points to start the moving average calculation, and the last 5 data points at the end of the year cannot be used because there are no subsequent days to include in the average.

User Tanmoy Bhowmick
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