Steven Sanderson takes us through a powerful regression technique:
LOESS, which stands for LOcal regrESSion, is a versatile and powerful technique for fitting a curve to a set of data points. Unlike traditional linear regression, LOESS adapts to the local behavior of the data, making it perfect for capturing intricate patterns in noisy datasets.
Click through for examples. LOESS works best with quadratic data, like in Steven’s last example image. The downside to it as a technique is that you can find spurious movement that may seem interesting but is just following the noise.