Holt’s Double Exponential Smoothing

Holt’s linear exponential smoothing method is similar in principle to Simple Exponential Smoothing, where it calculates alpha (the level component) to measure the level of trend in the forecast. It also adds the parameter, gamma (the trend component), to create a linear trend in the forecast. This equation is similar to a linear regression line and is good to use when a product is experiencing an exponential growth or decline.