The Coppock curve indicator is a technical analysis indicator developed by Edward Coppock back in 1962. This indicator shows itself well when trading on large timeframes.
Coppock curve (Coppock curve indicator) is presented in the form of a histogram, but is plotted according to a weighted moving average, measures a weighted MA (10) and the sum of two levels of the 14th and 11th periods of changes.
It sounds incomprehensible and difficult, but if you want to figure it out, then there will be no problems. The main thing (and this will be discussed below) is not to try to adjust the indicator until you fully understand its “nature”. We also recommend reading Forex Trading for Beginners.
Due to the fact that the indicator worked successfully even before the era of Internet trading and continues to this day, it is safe to say that this is one of the most interesting, universal, and deserving of your attention tools. He has proved by his deeds his professional suitability over the years.The Coppock curve can be adjusted in many different ways:
- Different periods - Coppock curves can be calculated using monthly, weekly, or even daily periods, although the indicator becomes less accurate as the length of the periods shrinks due to increased volatility.
- Modifiable Parameters - Coppock curves are calculated with 11-day and 14-day ROCs by default, but traders can adjust these numbers as needed to improve the indicator's accuracy in certain cases.
- Multiple Curve Support - Multiple Coppock Curves can be used to identify crossovers and other events, similar to how MACD lines and moving averages are interpreted when looking for buy or sell signals.