I don’t know why the line will move when i increase or decrease the α. If you know the reason, i hope you can tell me .

I recommend creating a toy example in Excel/Google Colab, or playing with stock charts, where it is very common to use moving averages.

You will be able to spot the differences.

Hint: v_t is averaging over 1/(1−\beta) days approximately.

What happens to the average over days approximation if you use \beta = 0.9, compared to 0.8 or 0.95?

Note that the red line uses bias correction, since it start at the first data point. Not required to understand the question though.

sorry, i find i forget to say this point.

i know the line will up and down, if i change the β. But i can’t understand why the line will move to right or left. this question is in the quiz, though i choose the right answer, i really don’t know how can it move left or right?

sorry, i find i forget to say this point.

i know the line will up and down, if i change the β. But i can’t understand why the line will move to right or left. this question is in the quiz, though i choose the right answer, i really don’t know how can it move left or right?

Look at the picture I gave you. Compare the 10EMA to the 20EMA. You will see that the 20 EMA is shifted to the right of the 10 EMA. Now you have to figure out if 20 EMA has a \beta greater than the 10 EMA, or if it is lower.

thank you very much.