Coppock Curve Signals for Long-Term Trend Entries and Exits

Summary

This document describes the Coppock curve, a long-term momentum indicator built by summing two rates of change and smoothing their sum with a weighted moving average. The classical settings use rate-of-change periods of 14 and 11 and a moving-average period of 10; the indicator implementation allows these parameters to be changed. It is presented for MetaTrader 4 and 5.

The described trading approach looks to buy when the curve turns upward from a trough below zero and to sell when it turns downward from a peak above zero, disregarding relatively minor swings. The stated aim is to identify trends in their early stages, rather than to pinpoint exact highs or lows. The document provides no backtest, markets tested, or performance evidence, and it notes that the signal is not intended to capture turning points precisely. It presents a rule of thumb, not a complete system with position sizing or risk controls.

Key ideas

• The Coppock curve smooths the sum of two rate-of-change series with a weighted moving average.\nIts classical settings use rate-of-change periods of 14 and 11 and a smoothing period of 10.\nThe described buy signal occurs when the curve rises from a trough below zero.\nThe described sell signal occurs when the curve falls from a peak above zero.\nThe method targets early trend participation and is not designed to identify exact market turning points.

Tags

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