Forecast - Chart Trend Line - Excel

Forecast future values based on historic trends


Insert – Charts – Line Chart

        Chart tools - Layout - Trendline - Linear Trend line


Example Forecast Using a Linear Trend line



Example Trend Forecast Source Data



Trendlines

 Trend lines project future values using regression analysis (the relation ship between the A and Y axis)

Which trend line to use

The closer the R-squared value is to 1 the more reliable the trend line is, typically a trend line that is:
   - linear is best for data increasing/decreasing at a steady state i.e. resembles a line
   - logarithmic is best for data increasing/decreasing at a fast rate which subsequently slows i.e. resembles curve
   - Moving average is best for fluctuating data as it smooths out the trend