The Coppock Indicator: Combining Two Rates of Change

Summary

The document explains the classic Coppock indicator as a long-horizon signal for potential buying or selling opportunities. Its calculation adds two rates of change, using lookback periods of 14 and 11, then applies a 10-period weighted moving average to that sum. These settings are presented as defaults and can be adjusted through the indicator’s input parameters.

The note gives the indicator’s construction but does not define explicit entry or exit rules, asset classes, or risk controls. It includes no chart examples, backtest, or evidence about performance, so it should be read as a concise description of an indicator rather than proof of a profitable strategy. The document attributes the indicator to Edward Coppock.

Key ideas

• The Coppock indicator combines two rate-of-change measurements.
• The classic settings use lookbacks of 14 and 11 for the two rate-of-change inputs.
• A 10-period weighted moving average smooths their sum.
• The indicator is described as a tool for identifying longer-term market opportunities.
• The note does not provide trading rules or performance evidence.

Tags

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