How to Add a Trendline in Google Sheets?

Trendlines are lines drawn on a chart or graph to show a dataset’s trend or pattern. They visualize the variance across time or between two variables. They aid in identifying trends, patterns, and correlations in data.

Only individuals with experience with charting software had access to trendlines in the past. Now, almost everyone can master how to add a trendline in Google Sheets in a few clicks.

To illustrate the importance of trendlines, let’s look at a case study.

A company was considering whether to expand into a new product line. They compiled data on sales and advertising expenditures and plotted it on a chart. Yet, it was hard to discern relationships and patterns between the two variables.

The patterns and relationships became clear when they added a trendline to the chart. The trendline showed that the more they spent on advertising, the higher their sales. This data was crucial in decision-making on investing in the new product line.

Let’s learn how to add a trendline in Google Sheets and discuss the importance of trendlines in data visualization.

Table of Content:

1. What is a Trendline?
2. What Does a Trendline on a Graph Show?
3. Importance of Trendline on a Chart
4. Types of Trendlines
5. Best Charts to Use Trendline for Better Understanding of Data
6. How to Add a Trendline in Google Sheets?
7. Wrap Up

What is a Trendline?

A trendline is a line used to illustrate data points on a graph, chart, or diagram. It helps identify a trend’s direction or estimate future values. Trendlines are also known as lines of best fit. They indicate an average or expected outcome for a given data set.

Trendlines are common in forecasting, as they can provide insight into potential future trends. You can predict future sales, customer demand, and other essential metrics by analyzing trendlines.

You can use trendlines in other situations, such as:

• Analyzing stock market trends.
• Analyzing changes in weather patterns.
• Identifying any changes in consumer behavior.

Try your best to be precise while drawing a trendline. Specifically, draw a line that best fits the data points. The line should not deviate too far from the data points.

What Does a Trendline on a Graph Show?

A trendline typically shows the direction of the trend in the data. It may show a positive, negative, or no trend at all. The slope of the trendline is the indicator:

• If the trendline slopes upward, then the data increases over time.
• If the trendline slopes downwards, then the data decreases over time.

Trendlines also indicate how quickly the data changes over time. Whether the data is changing at a steady rate or if there are periods of rapid change.

Importance of Trendline on a Chart

Here are reasons why trendlines are important in data visualization:

• Discovering new opportunities. Plotting a trendline on a chart allows you to identify potential entry and exit points for your investments.
• Forecasting future market movements. You can identify potential points of support and resistance. This helps with decision-making about when to enter and exit the markets and how much to invest.
• Determining significant market trends. You can learn more about the market drivers and lagging elements by examining the trendline. This aids in determining which products and services to invest in and which to avoid.
• Trendlines can help traders identify potential reversals in the market. This can be a great way to capture profits or limit losses.
• Trendlines can help traders identify potential breakouts. This helps with capitalizing on market movements.

Types of Trendlines

• Linear

A linear trendline is a best-fit straight line used with linear data sets. Simply, it shows data increasing or decreasing at a constant rate along a straight line.

• Exponential

An exponential trendline is a curved line. It represents data that increases or decreases at an increasingly higher or lower rate.

• Polynomial

A polynomial trendline is a curved line used when data fluctuates. That is when data both increases and decreases.

• Logarithmic

A logarithmic trendline is a type of best-fit curved line. It is used when the data change rate increases or decreases rapidly and then levels out.

• Power

A power trendline is a curved line with data sets that increase or decrease steadily.

• Moving Average

A moving average trendline smooths out fluctuations in data to show a pattern or trend more clearly.

Best Charts to Use Trendline for Better Understanding of Data

• Control Chart

A Control Chart is a statistical tool that analyzes process behavior over time. Consequently, detect significant changes. Unusual trends or patterns in the data will help identify whether the process is stable and in control. Or if it needs adjustments to improve quality.

The Control Chart consists of data points plotted on a graph, often with a trendline. The trendline compares the actual observed performance to the expected performance of the process.

Control Charts are common in quality control for monitoring production processes. Thus, identify issues that could lead to poor product quality or process inefficiency.

Example

Assume you own a shoe company where you have collected yearly data on customer claims.

Months	No. of Claims
Jan	120
Feb	80
Mar	150
Apr	100
May	90
Jun	130
Jul	80
Aug	120
Sep	120
Oct	100
Nov	130
Dec	120

Below is the Control Chart visualization of the data.

• Scatter Plot

Scatter Plots help show the relationship between multiple variables.

A Scatter Plot is a graph with a sequence of data points. Each data point comprises two values, one from each variable. The points are dispersed around the graph, demonstrating the relationship between the two variables. The pattern of points can suggest a strong, weak, or no correlation.

It has a trendline that displays the direction of the relationship between the variables. It’s either straight or curved based on the nature of the relationship. If the data points form a straight line, then the relationship between the two variables is linear. If the data points form a curved line, then the relationship is non-linear.

Example

Below is data on online store sales.

Items	No. of Orders	Sales
Grocery	300	200000
Household & Pet Care	250	400000
Health & Beauty	180	150000
DIY & Furniture	400	400000
Office Supplies	200	300000
Sports & Leisure	350	240000
Consumer Electronics	150	100000
Entertainment	500	800000
Electronic	250	200000
Cosmetic	450	600000
Toys	200	130000

Here is the Scatter Plot visualization of the data.

• Multi-Axis Line Chart

A Multi-Axis Line Chart uses multiple lines to represent different data points. Each line is plotted on its axis, making it easier to compare the data points. It is beneficial when you want to compare multiple datasets.

By adding trendlines to a Multi-Axis Line Chart, you can quickly identify any changes in the data. Trendlines make it much easier to spot changes in the data. Thus, incredibly useful for understanding how different factors are affecting the data.

Example

Below is yearly data from an online store.

Months	No. of Orders	Sales	Profit (%)
Jan	300	200000	15
Feb	250	400000	14
Mar	180	150000	12
Apr	400	400000	18
May	200	300000	13
Jun	350	240000	16
Jul	150	100000	11
Aug	500	800000	20
Sep	250	200000	14
Oct	300	210000	15
Nov	450	600000	19
Dec	200	130000	13

The Multi-Axis Line Chart maps the data as shown below.

How to Add a Trendline in Google Sheets?

Learn how to add a trendline in Google Sheets to visualize the exact pattern of the data. Consequently, draw meaningful conclusions. It also provides a better understanding of the overall trend of the data.

Adding a trendline to a chart in Google Sheets is a breeze with ChartExpo. ChartExpo is an add-on that allows you to create insightful charts and graphs in Google Sheets. Adding a trendline to a chart in Google Sheets takes just a few clicks.

Benefits of Using ChartExpo

• The best part about ChartExpo is that it is user-friendly. Using ChartExpo does not necessitate prior knowledge or experience with data visualization. Its intuitive user interface makes creating and modifying charts and graphs simple.
• ChartExpo has comprehensive features for analyzing data. Filtering, aggregation, analysis, and data visualization are some of the features. Due to these perks, you can easily spot trends in the data and inform prompt decision-making.
• There is a wide variety of chart types available in ChartExpo. From simple Bar Charts to complex Scatter Plots, ChartExpo has it all.
• You can make your visualizations stand out using ChartExpo’s wide variety of customization options.
• ChartExpo is cost-friendly. A free trial allows you to test it before committing to its affordable plans.

How to Install ChartExpo in Google Sheets?

1. To start using ChartExpo, you can download it directly from the Google Sheets program. To do this, select Extensions from the top toolbar.
2. A menu will appear. Click the Get add-ons option.
3. Search for ChartExpo, and click on Charts, Graphs & Visualizations by ChartExpo when it appears in the results.
4. Click the Install button. You will have to confirm your Google account and accept some permissions.

ChartExpo charts are available both in Google Sheets and Microsoft Excel. Please use the following CTA’s to install the tool of your choice and create beautiful visualizations in a few clicks in your favorite tool.

Example

Below is yearly data from an online store.

Months	No. of Orders	Sales	Profit (%)
Jan	300	200000	15
Feb	250	400000	14
Mar	180	150000	12
Apr	400	400000	18
May	200	300000	13
Jun	350	240000	16
Jul	150	100000	11
Aug	500	800000	20
Sep	250	200000	14
Oct	300	210000	15
Nov	450	600000	19
Dec	200	130000	13

• To get started with ChartExpo, install ChartExpo in Google Sheets.
• Go to Extensions > Charts, Graphs & Visualizations by ChartExpo > Open.

• To access the charts library, click the Add new chart button.

• Once ChartExpo is loaded. Click on “Multi Axis Line Chart”.

• Put the data table in the sheet first. Then, choose the Sheet name from the drop-down in the ChartExpo section.
• Select the metric column, metric is the numeric column in your data sheet (in this example, it is the No. of Orders, Sales, & Profit).
• Select the dimensions columns, dimension is the categorical column in your data sheet which contains text information (in this case, it is the Months).
• Click the Create chart button to complete the process.

• The Dual Axis Line Chart will look like as follows.

• Click the Edit chart button to make custom changes, as shown in the above image.
• To add a percentage sign on the right axis, click the pencil icon. In the small property dialog, under the “Label” section, select the “Postfix” property to add the % sign. Click “Apply All” to activate the changes on the chart.

• To add a dollar sign to the sales values on the left axis, select the “Prefix” property. Then click “Apply All” to see the change.

• To change the title of the chart, click on the pencil icon that is available very next to Chart Header.
• It will open the properties dialog. Under the Text section, you can add a heading in Line 1 and enable the Show option. Give the appropriate title of your chart and click on Apply button.

• To add trendlines of the metrics used in the chart, click the small pencil icon near the trendline. In the property dialogue, go to the Trendline section and click “Show”. Then, click the “Apply All” button to activate the changes.
• Click the “Save” button to keep all the changes.

• The final Chart will look like as below.

Insights

• Yellow lines or the filled area shows the number of orders. Compared to January, the orders decreased in December from 300 to 200.
• In July, the number of orders decreased to a low of 150. Yet in August, it increased to a maximum of 500.
• The pattern of sales and profit reciprocates the number of orders throughout all months.
• The trendline is linear and gradually increasing.

FAQs

What is a trendline?

A trendline is a line drawn on a chart or graph to show the direction of data points visually. It is a tool traders use to identify potential buying and selling opportunities. Consequently, assess the strength and direction of a trend.

What does a trendline on a graph show? 

A trendline connects data points to show the data’s general tendency or direction. It helps with identifying trends in data and making predictions about future values. You can use trendlines to forecast sales or other data points.

How do you get a trendline on a spreadsheet?

Using ChartExpo, getting a trendline on a spreadsheet is a simple process. Click the pencil icon near the Trendline property. This will open a dialogue where you can activate the Show option. The trendline will then appear on your spreadsheet.

What is the Purpose of a Trendline?

A trendline is plotted on a chart or graph to show the direction a dataset is moving. It identifies if a data set is increasing or decreasing. Consequently, spot any patterns in the data and predict future values.

Wrap Up

We have discussed the different types and importance of trendlines in data visualization. We have also learned how to add a trendline in Google Sheets.

You can use trendlines in a variety of ways, such as;

• Identifying trends
• Communicating trends.
• Capturing investment opportunities.
• Forecasting future movements.

With just a few clicks using ChartExpo, you can easily add a trendline in Google Sheets. Then utilize it to your advantage in instances such as decision-making.

Try your best to be precise while drawing a trendline. Specifically, draw a line that best fits the data points. The line should not deviate too far from the data points.

That’s it.

You now possess the necessary skills to use ChartExpo to add a trendline in Google Sheets.