Comparative Analysis of Simple Moving Average and Cumulative Moving Average in Financial Time Series Forecasting

Predicting the future is an essential aspect of contemporary life, involving the anticipation of upcoming events based on historical or current information, often accompanied by trend analysis. Various forecasting techniques are employed, depending on the data source and the forecast's objective.This article focuses on fundamental time series methods utilized in financial forecasting, specifically the simple moving average method, weighted moving average method, and exponential moving average method.The cumulative moving average, a variant of the simple moving average, is also briefly discussed in the short term. These methods are typically utilized to forecast time series that lack a discernible trend or seasonal component. The analysis of forecasting methods includes an exploration of basic concepts, potential applications, and a comparison of the irrespective limitations.