Moving average: Definition, Formula & Why It Matters
A moving average forecasts the next period using the average of the most recent periods, dropping the oldest as each new one arrives. It smooths out short-term swings and is the simplest practical forecasting method.
Moving average formula
Example
A 3-month moving average of 100, 120, and 140 units forecasts 120 for next month.
Why it matters for Reverb sellers
For shops with reasonably steady demand, a moving average is an easy, spreadsheet-friendly starting point that beats guessing. Choose a window short enough to react but long enough to smooth noise.
How Verbstack helps
Verbstack computes rolling averages from your sales so you always have a current baseline.
Track this on every order, automatically.
- ✓ Real fees, margins, and profit on every Reverb sale
- ✓ COGS and inventory tracked for you, no spreadsheet
- ✓ Full history and a live monthly P&L
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Related terms
See this number on every order.
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