I am working on a predictive model to predict change in the price of an asset (up, down, no change). The labeling is based on the derivative of the price and is exponentially smoothed with an alpha of 0.1 and so basically when the rate of change is above a certain threshold it gets a label 1, if below -1, and if not then 0.
Because I am using an exponentially smoothed moving average for the label, am I still allowed to use historical labels as a feature in my dataset? So for example if my predictive variable is the direction for t+5, could I use label at point t? Because there is an overlap in the data used