Coppock Curve Signals from Smoothed Rate of Change
Summary
The Coppock indicator combines two rate-of-change measures and smooths their sum with a weighted moving average. The described default periods are 14 and 11 for the rate-of-change inputs and 10 for the average; the MetaTrader version allows these settings to be changed. The article frames the indicator as a long-term signal, classically used mainly to identify buying opportunities.
Its suggested interpretation is to buy when the curve turns upward from a significant trough below zero, and to sell when it turns downward from a significant peak above zero. Smaller turns are ignored. The document says the indicator may help identify trends early, but does not claim it will mark exact highs or lows. It provides no backtest, market-specific evidence, or risk-management rules, so the described signals should be treated as a technical-indicator method rather than a demonstrated profitable strategy.
Key ideas
- The Coppock curve smooths the sum of two rate-of-change readings with a weighted moving average.
- The stated default periods are 14 and 11 for rate of change and 10 for smoothing.
- A rise from a substantial below-zero trough is presented as a buy signal.
- A decline from a substantial above-zero peak is presented as a sell signal.
- The indicator may lag turning points and is not expected to identify exact market extremes.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.