Coppock Curve
Overview
The Coppock Curve is a long-term momentum indicator originally designed to identify major buying opportunities in stock indices after significant market bottoms. It combines rate-of-change over two long lookback periods with WMA smoothing for a signal that fires rarely but with high conviction. Explore our indicator guide library for complementary long-term tools and strategies.
How It Works
Coppock = 10-period WMA of (14-period ROC + 11-period ROC). The indicator oscillates around zero: rising from deeply negative territory after a market low produces the classic buy signal. It was originally applied to monthly charts of the S&P 500.
Key Signals
- Coppock Curve turning up from below zero = major buy signal.
- Crossing above zero confirms a new bull market momentum regime.
- Coppock peaking and rolling over above zero = early warning of weakening momentum.
Common Mistakes
- Using Coppock for short-term trading — it was designed for monthly timeframes.
- Applying Coppock as a sell signal — it was never intended for identifying tops.
- Expecting frequent signals — the Coppock Curve may fire only once every few years on monthly charts.
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