Damped Trend Smoothing (DTS) Nonseasonal Method

Applies exponential smoothing twice, similar to double exponential smoothing. However, the trend component curve is damped (flattens over time) instead of being linear. This method is best for data with a trend but no seasonality.

Figure A-5 Typical Damped Trend Smoothing Data, Fit, and Forecast Line


Upward trending curve of damped trend smoothing data that flattens at the top