Coppock Curve: A Zero-Line Signal for Bullish Trends

Summary

The Coppock indicator is a momentum measure intended to flag the start of bullish market trends. Its underlying formula was introduced by Edwin Sedgwick Coppock in 1962. A signal occurs when the indicator rises through zero, which is interpreted as a possible shift toward an upward trend.

The calculation adds two rates of change, each measured over its own lookback period, then smooths their sum with a linearly weighted moving average. The method therefore depends on two momentum horizons and a smoothing period, along with the price series used in the calculation. The description focuses on upward signals: the formula was not designed to identify bearish trends, even though some traders apply it in that way. No performance tests or trading results are provided, so the zero-line crossing should be treated as an indicator signal rather than evidence of profitability.

Key ideas

• The Coppock indicator was designed to signal the beginning of bullish trends.
• A potential signal is produced when the indicator crosses above zero.
• The calculation smooths the sum of two rates of change with a linearly weighted moving average.
• The result depends on two momentum lookbacks, a smoothing period, and the applied price.
• The method is not designed to identify bearish trends, and no performance evidence is supplied.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.