Trade Stock Indices

Coppock Curve Technical Analysis & Coppock Curve Trading Signals

Developed & Created by Edwin Sedgwick Coppock.

Initially, this indicator was applied for the technical analysis of Stocks and Commodities, but it was subsequently adapted for trading Indices.

Coppock Curve - Coppock Curve Stock Indicator Analysis

This concept relies on market psychology in trading, based on the belief that human behavior is foreseeable. Price movements in stocks typically fluctuate in a zigzag pattern.

The idea of adaptation levels means that prices react to certain levels in a way that's similar to how stocks and stock prices have reacted in the past.

Index Technical Analysis & How to Generate Signals

In stock index trading, the moving average acts as a simple adaptation level. Prices swing around it. This indicator uses that idea in a longer-term way. It oscillates differently from the average.

Oscillators usually start by figuring out how much the market price has changed from an older price, which is used as the reference point.

Edwin Coppock suggested that the emotional state of market participants can be measured by adding together the percentage changes over a specified recent period to gauge the long-term momentum of the trading market.

Take this case. Compare prices to a year back. This month, the market rose 20% from then. Last month, it gained 15%. Before that, 10%, 7.5%, and 5%. The market builds speed.

Use the Coppock Curve for basic signals on market turns from extreme prices. Check for divergence or trend line breaks too. Combine them to confirm trades.

Implementation

The input levels of this technical indicator may need to be adjusted to better fit the dynamic nature of the trading markets trading.

Coppock Curve has got a zero line reference point, but this does not represent the adaptation-levels but it is only a visual reference point only.

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