Coppock Curve: Long-Term Bull-Market Signals from Smoothed Rate of Change
Summary
The Coppock Curve is presented as a long-term momentum oscillator intended to help investors begin accumulating near the start of a bull market. Its signal occurs when the curve crosses above zero. The stated rationale is that this crossover typically appears after the initial upward leg has begun, trading some timeliness for a signal the document characterizes as reliable. The calculation adds two rates of change of closing prices, using periods of 14 and 11, then applies a weighted average over 10 periods.
The document gives the indicator’s construction and interpretation but offers no chart, market sample, backtest, or performance statistics to support the reliability claim. It does not specify an asset universe, risk controls, or rules for exits and position sizing. The signal is therefore best understood as a lagging trend confirmation concept rather than a complete trading system; its usefulness would depend on market, parameter, and implementation choices that are not evaluated here.
Key ideas
- The Coppock Curve is a momentum oscillator intended for long-term accumulation decisions.
- Its bullish signal is a move above the zero line.
- The calculation combines two closing-price rate-of-change series and smooths their sum with a weighted average.
- The signal may arrive after a bull market’s first upward leg has begun.
- The description provides no backtest or supporting performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.