Catch the Flow

In our last lesson, we delved into time series data, understanding its unique nature and how to spot recurring seasonal patterns. Now, we’re going to focus on another crucial aspect of time series data: trends.

Imagine not just seeing the ups and downs of a river, but understanding its overall direction. Is it flowing steadily downstream, or is its water level slowly rising over the years? In this lesson, we will explore what trend analysis visualization is and how specific charts help us identify, analyze, and communicate long-term shifts and directions in our data over time.

What is trend analysis visualization?

Time series data is a sequence of observations over time. Within this sequence, a trend refers to the general long-term direction or movement of the data. It’s the underlying pattern after accounting for short-term fluctuations and seasonal cycles. For example, a company’s sales might have monthly ups and downs due to seasonality, but the overall trend over several years could be steadily increasing.

Trend analysis visualization is the process of using charts and graphs specifically to identify, represent, and interpret these long-term trends in time series data. It helps us answer questions like: Is our customer base growing or shrinking over the years? Is product demand increasing or decreasing in general? Is our website traffic consistently rising? Understanding these trends is critical for strategic planning and making informed future decisions.

Common types of trend analysis visualizations

While many charts can touch upon trends, some are specifically designed or used with particular effectiveness to highlight them. Let’s explore ...