coppock

Function Name: coppock

Tags: None

Category: Momentum

The Coppock Curve is a long-term price momentum indicator, designed by applying a front-weighted smoothing to an average of two momentums and used primarily to pinpoint major bottoms in the stock market.

There are two commonly accepted ways of determining buy and sell signals from a Coppock Curve.

The first is to trade on reversals from extremes. When first introduced in 1962, it was intended to generate buy signals in the S&P 500 only, and the suggested signal was an upturn in the Coppock Curve from an extreme low.

The second interpretation involves divergence analysis. The initial thrust off of a low in the stock market is often accompanied by the highest Coppock Curve reading (peak momentum). Subsequent advances tend to be accompanied by diminishing momentum (lower peaks on the Coppock Curve). That combination of a higher peak in price accompanied by a lower peak in the Coppock Curve creates a bearish divergence. Those signals warn of a weakening, aging advance, but often precede the ultimate top.

 

Author:   Edwin Sedgwick Coppock

Link:       http://en.wikipedia.org/wiki/Coppock_curve

 

ROCperiod1
	Default Value: 11  |  Minimum: 1  |  Maximum: 9999
	Type: Numeric
ROCperiod2
	Default Value: 14  |  Minimum: 1  |  Maximum: 9999
	Type: Numeric
WMA_period
	Default Value: 10  |  Minimum: 1  |  Maximum: 100
	Type: Numeric