Trent Turner
02 / Adaptive Demand Forecasting · Study 04 of 07

Local Demand Momentum

Testing whether recent demand improves forecasts beyond annual seasonality

Retained component

My Role
I developed and evaluated this component within the demand-forecasting project, including benchmark comparison and interpretation.
Business / Analytical Question
Can recent normalized demand capture the rate of change as well as the current level?
Evidence
Six completed weeks of seasonally normalized demand. 2026 sensitivity check: rising-season MAE 1.27 vs. 1.47; declining-season 1.92 vs. 1.80, both vs. recent 4-week benchmark.
Decision / Finding
Retain momentum; prioritize post-peak adaptation for further testing.
Outcome / Status
Retained component: local momentum helps the adaptive level respond to changing demand. Post-peak behavior remains a refinement question. Analytical validation; no operational deployment is claimed.
01

Business Question

Can recent normalized demand capture the rate of change as well as the current level?

02

Why It Matters

A flat rolling mean is slow when demand is rising or falling quickly. Seasonal normalization separates the recurring annual slope from current-year momentum.

03

Data / Method

Estimate a local linear endpoint across the previous six normalized observations. The documented weights are −4, −1, 2, 5, 8, and 11, divided by 21.

04

Analysis

Six completed weeks, one local endpoint

Relative-demand index · 2026 W15–W20 approximation

Indexed observationsSix-week local linear fit

Illustrates the documented local-trend operation using workbook observations. The endpoint illustrates the local trend on the same protected index scale; it cannot be used to recover the absolute forecast. This is not a momentum-only validation.

View chart data
WeekIndexed observationsSix-week local linear fit
1588.4089.78
16112.4087.90
1782.2086.01
1862.0084.12
1946.8082.24
20118.6080.35
Method detail
Lₜ = (−4rₜ₋₆ − rₜ₋₅ + 2rₜ₋₄ + 5rₜ₋₃ + 8rₜ₋₂ + 11rₜ₋₁) / 21

This is a local trend estimate, not a positive-weight moving average. Recent observations receive progressively greater weight. The final forecast floors the relative estimate at 0.01.

05

Results

Rising season · W01–W20

2026 calendar-alignment sensitivity check · approximate MAE · weekly New Customers

Adaptive
1.27
Recent four-week
1.47

Post-peak adaptation: the primary failure mode

2026 calendar-alignment sensitivity check · approximate MAE · weekly New Customers

Adaptive
1.92
Recent four-week
1.80
06

Interpretation

Post-peak adaptation emerged as the primary failure mode in this sensitivity check. In W21–W36, adaptive MAE was 1.92 versus 1.80 for the recent four-week benchmark: the simpler recent-history estimate adjusted faster during decline. Next, test post-peak adaptation using exact daily alignment and chronological validation.

07

Limitations & Considerations

The phase results evaluate the full architecture under an overlap-weighted calendar approximation. They are directional evidence, not a standalone momentum ablation or exact 2026 validation.

08

How this fits into the forecasting system

Retained component: local momentum helps the adaptive level respond to changing demand. Post-peak behavior remains a refinement question.