I want to remove the trend from Time series for monthly data of water consumption.
I tried both methods
1- detrend
2-moving average
which method is appropriate for this issue?
please see attached files
Thanks in advance for you cooperation
MA is one way of detrending. In macro data, one of the most popular detrending technique is HP-filter, which is actually an optimal MA.
Dear Peng
Can use this method for daily data ?
Yes, of course, you only have to adjust the parameter of lambda. Try google.
MA is rather a way of de-noising your data. It can still have a trend.
Gokhan, HP filter guarantees that the filtered data has no trend. But you are right in general. After a simple MA, you may still have trend.
Dear Both,
Thank you very much
Where is your attached files
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