Coppock Curve: Combining Two Rates of Change with a Weighted Average

Summary

The Coppock curve is a long-term price indicator introduced by Edward Coppock in 1962. The document describes its classic construction: add two rates of change, using lookback periods of 14 and 11, then smooth their sum with a 10-period weighted moving average. It was originally intended to identify buying opportunities, though the page also characterizes it more generally as a long-term buy or sell indicator.

The indicator’s three periods and the moving-average type can be adjusted, with the page recommending that users retain the classic weighted-average setting. It explains the formula and parameters but supplies no chart, market examples, backtest, or evidence of performance. The description also does not define precise entry or exit rules, markets, or risk controls, so the indicator alone is not a complete trading system. Its use should be evaluated in the context of a chosen market and strategy.

Key ideas

• The Coppock curve adds two rates of change before smoothing their sum.
• The classic lookbacks are 14 and 11 periods, followed by a 10-period weighted moving average.
• The indicator was originally designed to identify long-term buying opportunities.
• The page describes adjustable parameters but gives no performance evidence or complete trading rules.

Tags

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