We will cover the specifics of the** Displaced Moving Average** (**DMA**) in the **Excel** formula for this topic. **DMA** is a variant of the **Simple Moving Average** (**SMA**). So, while dealing with **Displaced Moving Average**, we must first catch **SMA** in order to obtain a wider view. The **Simple Moving Average** (**SMA**) is essentially a set of averages for several groups within the same dataset. **SMA** can also be referred to as a moving average or sliding average.

In the above dataset, the **Simple Moving Average **has been calculated for the **Profit(US Dollar) **giving the interval of **3 **years.

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## What is Moving Average?

With a **Moving Average**, the median follows the same time frame but moves because of including the newer data.

For example, you must supply the revenue from Days 1, 2, and 3 if someone asks you for the moving average of gross revenue on Day 3. And if someone asks you for the day 4 moving average of revenue, you must respond with the day 2, day 3, and day 4 sales values. You must maintain an identical time period (3 days) as further data is included and construct the moving average using the additional data.

To make it simple to spot patterns, a moving average straightens out any abnormalities (maxima and minima) in the data. Because more data points are contained in each providing multiple when the interval period is larger, there is a greater softening of variations.

## Definition of Displaced Moving Average

When moving A **Simple Moving Average** forward or backward in time to obtain a better prediction trend is called a **Displaced Moving Average** (**DMA**). **DMA** might be advantageous or detrimental. Positive displacement implies that all average values have been moved ahead in time, and negative displacement has been moved backward in time. In the examination of meteorological data and equity markets data, we simply employ the moving averages. In addition, **DMA**s are better than **SMA**s for leading indicator purposes.

## Learn to Calculate Displaced Moving Average Applying Formula in Excel with 2 Easy Methods

While writing this article, โHow to calculate Displaced Moving Average Formula in **Excel**โ, weโve considered a dataset that contains approximately **4** columns and **17** rows. In this dataset, we added **Years**, **Profit (US Dollar)**, and **Simple Moving Average** to make you better understand. But if you want, you can change the entities and put your own values.

**APPROACH**

### 1. Using AVERAGE Function and Inserting Chart to Calculate Simple Moving Average

If you want to find the **Displaced Moving Average**, you have to calculate the **Simple Moving Average **first. There is a procedure to calculate Simple Moving Average by using the **AVERAGE **function in **Excel**. After applying the function, you need to insert the chart. This technique is very handy and simple. You can do this by maintaining the following steps.

โฌ๏ธโฌ๏ธ **STEPS** โฌ๏ธโฌ๏ธ

- Initially, select cell
**D8**. - Secondly, put the following formula on that cell.

**=AVERAGE(C6:C8)**

- Afterward, press
**Enter**button.

- Belatedly, use the
**fill handle**to drag the formula to the entire column. - Now if you press any particular cell, you will notice that the moving average is changing according to the cell.
- This particular change is known as the
**Displaced Moving Average**.

- After that, go to the
**Insert**tab and click on the**Recommended Charts**.

- Now you will find a dialogue box name
**Insert Chart**. - Seventhly, select any chart you want from the
**Recommended Charts**. - Then tap the
**OK**button.

- Finally, you will get the desired result in the chart.

Undoubtedly, this is a simple process to calculate **Displaced Moving Average** using the formula in **Excel**.

**๐ Read More: ****2 Examples to Calculate Centered Moving Average in Excel**

**APPROACH**

### 2. Applying Data Analysis Tool in Excel

The** Data Analysis **tool is one of the easiest ways to calculate the **Displaced Moving Average** using the formula in **Excel**. To do this you have to activate the **Data Analysis **tool first. It is a very simple procedure. You can do this very easily if you follow the given steps carefully.

โฌ๏ธโฌ๏ธ **STEPS** โฌ๏ธโฌ๏ธ

- Initially, you need to go to the
**Fileย**tab. - Secondly, click on the
**Option**.

- Then you will get a dialogue box name
**Excel Options**. - Thirdly, select the
**Add-ins**. - Now select the
**Excel Add-ins**to**Manage**and click on**Go**.

- Fourthly, select the
**Analysis ToolPak**from**Add-ins**. - After that, tap on the
**OK**button.

- Afterward, return to your worksheet.
- Now go to the
**Data**tab and select**Data Analysis**.

- Again you will get a dialogue box named
**Data Analysis**. - Belatedly, select the
**Moving Average**and click on the**OKย**button.

- Then you will get another dialogue box named
**Moving Average**. - Give the
**Input Range:**

**$C$6:$C$17**

- After that, select your desired
**Interval**and select the**Output Range:**

**$D$6:$D$17**

- Afterward, check the
**Chart Output,**and finally, tap the**OKย**button.

- Eventually, you will get the result that you need.

Truly, this is a very simple and handy approach to calculating **Displaced Moving Average** using the formula in **Excel**.

**๐ Read More: ****5 Steps to Estimate Triple Exponential Moving Average in Excel**

## Calculate 7 Day Moving Average in Excel

If you want to calculate a **7-day** or **3-month**, or **12-month** moving average in **Excel **then this portion is for you. We will do exactly the thing that you want to have. In this case, we will use the **SUM **function in **Excel**. This approach is not tough. You can easily do this if you carefully follow the given steps.

โฌ๏ธโฌ๏ธ **STEPS** โฌ๏ธโฌ๏ธ

- First, you need to select cell
**E6**. - Secondly, put the following formula on that cell.

**=SUM(C6:C12)/7**

- Finally, click on the
**OKย**button. - Eventually, you will get the result as well.

Indeed, you can easily achieve this procedure to calculate the 7-day or 3-month, or 12-month moving average in **Excel**.

**๐ Read More: ****5 Ways to Calculate 7-Day Moving Average in Excel**

## ๐ Important Notes

You should be aware of the following things while performing the processes mentioned above:

๐๏ธย You need to be careful while applying the **Excel **function.

๐๏ธย You should be conscious when you intend to use the **Data Analysis **tool in **Excel**.

## ๐ Takeaways from This Article

If we summarize the whole article, we have got some points.

๐ย Initially, we gave the definitions of **Moving Average **and **Displaced Moving Average**.

๐ย Secondly, we calculated **Displaced Moving Average** using the **AVERAGE** formula in **Excel**.

๐ย Thirdly, we applied the **Data Analysis **tool in **Excel**.

๐ย Finally, we tried to calculate the 7-day or 3-month, or 12-month moving average using the **SUM **function in **Excel**. **ย **

## Conclusion

We wish that you would be able to calculate the displaced moving average in **Excel** formula using this article. As we have shown several methods here, you can easily follow which one is best suited for you. If you have any skepticism, feel free to ask me in the comment. In the end, to learn more about **Excel** tactics, we recommend you to visit our website **www.ExcelDen.com**.

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