Q: Tips

- Originally designed for monthly S&P 500 charts — buy when crossing zero from below - The Coppock Curve was not designed to generate sell signals; it is a buy-only indicator in its original form - Can be adapted to daily/weekly charts with adjusted parameters - Works best for identifying major market bottoms - Combine with other indicators for sell signals and shorter-term timing

Question 1

What is Coppock Curve?

Accepted Answer

The Coppock Curve is a long-term momentum indicator originally designed by Edwin Coppock to identify major buying opportunities in stock market indices. It combines two Rate of Change calculations smoothed with a Weighted Moving Average. The indicator oscillates around zero and was designed for monthly charts.

Question 2

How it works

Accepted Answer

Coppock applies a WMA to the sum of two ROC values: ``` Coppock = WMA(ROC(Close, 14) + ROC(Close, 11), 10) ``` The indicator smooths long-term momentum changes to identify major trend shifts.

Question 3

Key features

Accepted Answer

- **Above 0** — Long-term bullish momentum - **Below 0** — Long-term bearish momentum - **Zero-line cross from below** — Major buy signal (original purpose) - **Designed for monthly charts** — Can be adapted to other timeframes

Question 4

Buy signals

Accepted Answer

- Coppock crosses above 0 from below (classic buy signal) - Coppock is below 0 and begins turning upward - Coppock reaches historically extreme negative values

Question 5

Sell signals

Accepted Answer

- Coppock crosses below 0 from above - Coppock is above 0 and begins turning downward - Coppock diverges bearishly from price

Question 6

Parameters

Accepted Answer

| Parameter | Default | Description | |-----------|---------|-------------| | WMA Period | 10 | Weighted Moving Average smoothing | | ROC Period 1 | 14 | First Rate of Change period | | ROC Period 2 | 11 | Second Rate of Change period |

Question 7

Example conditions

Accepted Answer

| Condition | Meaning | |-----------|---------| | `COPPOCK(10,14,11) > 0` | Long-term bullish momentum | | `COPPOCK(10,14,11) cross_over 0` | Major buy signal | | `COPPOCK(10,14,11) cross_under 0` | Momentum turned bearish | | `COPPOCK(10,14,11) < 0` | Long-term bearish momentum |

Question 8

Tips

Accepted Answer

- Originally designed for monthly S&P 500 charts — buy when crossing zero from below - The Coppock Curve was not designed to generate sell signals; it is a buy-only indicator in its original form - Can be adapted to daily/weekly charts with adjusted parameters - Works best for identifying major market bottoms - Combine with other indicators for sell signals and shorter-term timing