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Aston Villa put on an impressive attacking display
Watkins' early goal set the tone, and Luiz's brace, along with contributions from Ramsey and Bailey, sealed the win.
The result strengthens Villa's position in the top four, while Forest remains in a mid-table position.
Douglas Luiz scored twice as a scintillating attacking display earned Aston Villa all three points against Nottingham Forest at Villa Park.
Villa took the lead in the fourth minute with Ollie Watkins tapping in his 14th Premier League goal of the season after brilliant work down the right by Leon Bailey.
Luiz then scored twice in 10 minutes, first slotting home a Jacob Ramsey cut-back in the 29th minute, before heading in John McGinn's right-wing cross.
Moussa Niakhate chested home his first Forest goal in first-half stoppage-time, before Morgan Gibbs-White dinked over the advancing Emi Martinez three minutes after the break.
Bailey secured the three points for the hosts, tapping into a vacant net after Watkins' effort was saved following Forest losing the ball high up in their own half.
The result sees fourth-placed Villa open a five-point lead on Tottenham, who are not in action this weekend, and a eight-point gap to sixth-placed Manchester United, who lost 2-1 against Fulham at Old Trafford.
Forest remain 16th, four points clear of the relegation zone.