Weights all of the past data with exponentially decreasing weights going into the past. In other words, usually the more recent data has greater weight. Weighting in this way largely overcomes the limitations of moving averages or percentage change methods. Predictor can automatically calculate the optimal smoothing constant, or you can manually define the smoothing constant.
This method, which results in a straight, flat-line forecast is best for volatile data with no trend or seasonality.
