Let’s read in this article how to calculate the moving average of time series in Excel?
Exponential smoothing is used to easily identify irregularities (peaks and valleys).
Step 1. First, let’s have a look at our time series.
Step 2. On the Data tab, in the Analysis group, click Data Analysis.
Step 3. Choose Exponential Smoothing and click OK.
Step 4. Click in the Input Range box and select B2: M2 Range.
Step 5. Click in the damping factor box and type 0.9. The literature often talks about smoothing constant α (alpha). The value (1– α) is called the damping factor.
Step 6. Click in the Output Range box and choose cell B3 and click OK
Step 7. Draw a graph of these values.
Step 8. Repeat steps 2 to 8 for alpha = 0.3 and alpha = 0.8.
Best understand through the snapshot
Exponential Smoothing in Excel