In Google Sheets, if you want to calculate a series of averages for a dataset in a fixed period, you can use the Moving Average method. The moving average is basically used in time series data analysis. In this article, we will explore the particular exponential moving average in Google Sheets.

## A Sample of Practice Spreadsheet

You can download spreadsheets from here and practice.

**What Is Exponential Moving (Rolling/Running) Average?**

The **Exponential Moving Average** or **EMA** is one kind of moving average that gives more emphasis on recent observations. By using this method you can easily cope with recent trends.

The syntax for **Exponential Moving Average** is:

**EMA**

_{Current}= EMA_{Previous}+2/n+1(X_{Current}-EMA_{Previous})- Here,
**EMA**is the current exponential moving average and_{Current}**EMA**is the previous exponential moving average._{Previous } **n**is the number of periods and**X**is the current data value._{Current}

Let’s see its application with a simple example:

**Step by Step Procedure to Find Exponential Moving Average (EMA) in Google Sheets**

To find the exponential moving average in Google Sheets you have to follow three simple steps. First, you have to create a dataset, then apply the EMA calculation formula and finally get the output for the entire dataset.

**Step 1: Setting Up Data**

To calculate the exponential moving average first, we develop a dataset.

- The dataset represents the date and sales for
**June**.

- To apply the moving formula in this dataset we create a new column name
**3-Days EMA**. As we want to calculate the**EMA**of 3 days that’s why we also add several**Periods**cells to specify the period. We add**3**in this cell.

**Step 2: Applying the EMA Calculation Formula**

To calculate the **EMA** for the entire dataset now we have to insert the **EMA** calculation formula,

- First, for calculating the
**3-day EMA**inserts the first value of the dataset as the initial 3-day EMA value. Here, we input**112**in cell**D5**as the initial**3-Days EMA**value. - The initial value is not affected by the calculation.

- Now select cell
**D6**to apply the calculation formula.

**EMA**

_{Current}= EMA_{Previous}+2/n+1(X_{Current}-EMA_{Previous})- Now, insert the
**D5**cell as the first value of the formula. Here,**D5**represents the previous**EMA**value.

- Then input
**+**symbol and after that**2/(1+F5)**where**F5**is the number of periods. - This section of the formula is also known as the
**smoothing constant**.

- After that insert the
**multiply sign (*)**and also subtract between**C6**and**D5**. - Here,
**C6**is the current (date)**Sales**value for the dataset and**D5**is the previous**EMA**value.

**Step 3: Finalizing Output for Entire Dataset**

After applying the whole formula,

- Finally, press
**ENTER**and you will find the**EMA**value in the selected cell.

`=D5+2/(1+F5)*(C6-D5)`

- But before we apply this formula to the rest of the column, we have to make a couple of changes.

- Here, to make the number of period cells constant we add
**$**before the cell number. So in the formula, it presents like**$F$5**. So make sure to update.

`=D5+2/(1+$F$5)*(C6-D5)`

- Finally, use the
**fill handle**to apply this**EMA**formula to the rest of the column.

**Find 50-Days Exponential Moving Average in Google Sheets for Registered Company**

To calculate the 50-day exponential moving average for any registered company, you can use **the GOOGLEFINANCE function** in Google Sheets. With the help of this function, you can easily generate a customized dataset by using different parameters in the function.

**Step 1: Generating Data with GOOGLEFINANCE Function**

The **GOOGLEFINANCE** function is an applied function in Google Sheets, which presents real-time financial and market data directly in Google Sheets.

The function imports data directly from Google Finance website which is very up-to-date. So, if you want to deal with stock or market finance-related data, this function can be a lifesaver for you.

The general syntax of the **GOOGLE FINANCE** function is as follows:

`=GOOGLEFINANCE(ticker, [attribute], [start_date], [num_days|end_date], [interval])`

ARGUMENT |
REQUIREMENT |
FUNCTION |
---|---|---|

ticker | Required | Acronyms to separately identify the designated trade securities. |

[attribute] | Optional | Types of information you want to display. |

[start_date] | Optional | To indicate the date from which you want to fetch the data. |

[num_days|end_date] | Optional | Represents the time frame to extract data. |

[interval] | Optional | The frequency of picking data. For example, “daily” or “weekly”. |

To get the desired dataset,

- First, we select a
**ticker**which is**AAPL**, a short form of Apple Inc., then we choose the starting and ending date of the dataset.

**Note:**You can add a ticker for other registered companies as long as you know their abbreviation. For example,

**GOOG**stands for Alphabet Inc Class C,

**TGT**for Target Corporation, etc.

- then select cell
**B5**and insert the**GOOGLEFINANCE**function.

`=GOOGLEFINANCE(B4,”all”, C4,D4,”daily”)`

- Finally, press
**ENTER,**and you will find the date-wise dataset.

**Step 2: Calculating the First 50-Day Exponential Moving Average**

To calculate the EMP for 50 days you have to apply a simple formula.

- In the beginning, create two rows presenting the
**Period**and**EMA Calculation**.

- After that add periods to calculate
**EMA**. Here, we add**50**as we want to calculate**50 days EMA**.

- Now add the
**smoothing constant**formula in cell**K6**.

`=2/(K5+1)`

- Then press
**ENTER**to get the calculated smoothing constant value of the**EMA**.

- Now, insert a column named the
**50-day EMA**that will present the moving average after 50 days.

- After that select cell
**H56**to insert the average formula for the previous 50 days’**close**price.

`=IFERROR(AVERAGE(F6:F56),””)`

**Formula Breakdown:**

**F6:F56**represents the range of the value.**AVERAGE(F6:F56)**is the average value of the data range.**IFERROR(AVERAGE(F6:F56),””)**is used to get the accurate result. Returns blank if there is an error.

- In the end, click on
**ENTER**to get the desired result.

**Step 3: Calculating the Continued 50-Day Exponential Moving Average**

After calculating the **EMA**, now you can calculate the continued 50-day exponential moving average. To do so,

- First, select cell
**H57**to input the continued exponential moving average formula. - The general formula for the dataset is:

`=((yesterday close price- yesterday EMA)* EMA Calculation)+yesterday EMA`

- Finally, press
**ENTER**to get the exponential moving average.

`=((F56-H56)*J6)+H56`

- Additionally, insert
**the IFERROR function**to get the exact result and avoid errors for the dataset.

`=IFERROR((((F56-H56)*J6)+H56),””)`

**Step 4: Finalizing Table**

To get the **EMA** for the entire dataset just drag down the fill handle and you will find the **EMA** for the entire dataset.

- Here, for the entire column, the
**EMA Calculation**cell is constant. That’s why we use**$J$6**in the formula for the entire column. The**$**symbol before any cell number will lock the cell in the formula and make the cell absolute.

`=IFERROR((((F56-H56)*$J$6)+H56),””)`

- Additionally, you can find the formula at the end of the dataset.

**Things to Remember**

- Insert the formula carefully.
- You can apply the second method for any number of days you want.
- For large datasets, always combine the main formula with the
**IFERROR**function to avoid errors.

**Conclusion**

We believe this article can help you to calculate the exponential moving average in Google Sheets. If you are keen to learn more about different functions in Google Sheets you can visit the **OfficeWheel **website and enhance your proficiency.