Holt-Winters Additive trend and seasonality method

The method takes both trend and seasonality into consideration.

dmp_Holt-Winters Additive trend and seasonality method formula

Where s is the seasonality period length.

For 0 ≤ α ≤1, 0 ≤ β ≤1 and 0 ≤ γ ≤ 1.

To get started, initial values of the level, trend and seasonality are required. To initialize the seasonality a minimum of one complete seasonal cycle is required dmp_Holt-Winters Multiplicative trend 2.

Initial values for dmp_Holt-Winters Multiplicative trend 3 are calculated based on:

dmp_Holt-Winters Additive trend calculation

This table displays the initializations for Holt-Winters 4 Additive:

dmp_Holt-Winters Additive trend initialization

dmp_Holt-Winters Additive trend and seasonality method graph