I am trying to learn Holt Winters exponential smoothing. In the algorithm there are three indices involved (level, trend, seasonality) while forecasting.
My questions:
What is the interpretation of these 3 indices?
How do I differentiate between different values of these indices? For example, what is the difference between level 100 and level 200 or what is the difference between trend 2 and trend 5?
How do we initiate these values?
Any help will be greatly appreciated.
I started with this video. But my above questions did not get clear. https://www.youtube.com/watch?v=VLlGO_fCdX0
