Explain the connection between adaptive smoothing and tracking signals.

What is a tracking signal? Explain the connection between adaptive smoothing and tracking signals. 

A tracking signal is the measure of the quality of the forecast or how accurate are the predictions of a forecast. As larger as it gets, the forecast prediction is adversely affected.

Adaptive smoothing is a technique used to set limits to the tracking signal. When the tracking signals are moving these limits, adaptive smoothing helps the forecast models to adopt to the new circumstances.