Continue reading...The Coppock Curve (CC) was introduced by economist Edwin Coppock in Barron’s, October 1962. While useful, the indicator isn’t a commonly discussed amongst traders and investors. Traditionally used to spot long-term trend changes in major stock indexes, traders can use the indicator on any time and in any market to isolate potential trend shifts and generate trade signals.
Coppock CurveCoppock initially developed the indicator for long-term monthly charts; this will appeal to long-term investors as signals are quite infrequent on this time frame. Drop down to a weekly, daily or hourly time and the signals become progressively more abundant.
The indicator is derived by taking a weighted moving average of the rate-of-change (ROC) of a market index such as the S&P 500, or trading equivalent such as the S&P 500 SPDR ETF (ARCA:SPY). Simply put, it is a momentum indicator that oscillates above and below zero.
There are three variables within the indicator: the Short ROC Period and...
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