Coppock Curve

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.

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.

• 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

Buy signals

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

Sell signals

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

| 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 |

| 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 |

• 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