Adds two rates of change of different lengths and smooths them with a weighted moving average to measure the moment the whole market's mood bottoms and turns up. Edwin Coppock's momentum indicator, born from the idea of mourning time, built to gauge long-term buying opportunities.
The Coppock Curve is a momentum indicator devised by the economist Edwin Coppock in the 1960s.
Where many oscillators track the small daily swings, what Coppock set out to see was the long mood of the whole market. It was designed for the monthly chart, built to gauge the once-in-a-cycle moment when a stock index carves out a major bottom and turns up.
The mechanism is plain. It adds two rates of change (ROC) of different lengths and smooths the sum with a weighted moving average. The result is a single line that waves slowly up and down.
When that line sinks below zero, bottoms out there, and turns up, Coppock reads it as a long-term buy signal. This is not a tool for daily timing, but a signal that the bear market is ending.
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