Coppock Curve Indicator

Coppock Curve Indicator

Coppock Curve is a classic technical oscillator that gives three types of buy and sell signals. Try now! Free to download! Non-repaint.

The Coppock Curve – the classic oscillator. It was developed by the economist Edwin “Sedge” Coppock in 1965. What is interesting – by order of the Episcopal Church.

The indicator is considered as a tool for long-term investments on the stock market, and was originally designed to open long positions on daily charts.

However, there is nothing that restricts you to load the Coppock Curve on intraday charts – for example on the hourly price chart (as shown in the screenshot below):

Note the zone below the price chart. The original Coppock Сurve is colored gray. Also in this MT4 indicator for convenience and greater functionality added:

gold colored moving average, which smooths the original curve;
two-color bar histogram – to make it easier to understand: whether Coppock Curve is going higher or lower, is above or below zero.
Another technical indicator – Rate of Change (ROC) – lies at the heart of the Coppock curve calculations. So the Coppock Curve is a smoothed impulse indicator.

How do you trade with Coppock curve?
The classic signal is the Coppock Curve crossing the zero level from bottom to top.

This signal should be used to open long positions. Recall that the Coppock Curve indicator is designed specifically for buying on the stock markets and holding positions for a long time.

There are other uses of the indicator, such as:

Crossing the zero level Curve from top to bottom to open short positions.
Intersection of the Curve and its smoothing Moving Average.
Let’s look at some of these signals with examples below.

Classic Buy Signal
An example of such a trade (from the forex market USDJPY, H4) is shown below. According to the classic rules, a long position should be opened when the main line of the Coppock Curve crosses the zero level from bottom to top.

Close the position on a counter signal. Or use your own position management rules.

Coppock Curve Sell Signal
This is an example (from EURCHF intraday forex market) of a sell signal, which is formed when the main line of the Coppock Curve indicator (gray) crosses the moving average (gold) from the top to the bottom.

Set a stop-loss above the recent highs of the bar and watch for a reverse signal, which can serve as a reason to reduce the short position, close it, or reverse into a long position.

Coppock Curve Additional Signal
The intraday price chart below (AUDJPY forex market) shows a sell signal that appears when:

higher highs on the price chart correspond to lower highs on the Coppock Curve indicator;
the Coppock Curve indicator turns from top to bottom.

Set a stop-loss above the previous high. Close the position when you receive a reverse signal.

As an alternative option for closing a position, use a trailing-stop.

Conclusion
The Coppock Curve Indicator for Metatrader is an oscillator that smooths the ROC impulse indicator. It is unlikely that this indicator can be called the best of its kind, but it is possible that it will become indispensable in your forex trading.

Advantages of the Coppock Curve Indicator:

It can give both buy and sell signals.
There are 3 types of signals – zero line crossing, moving average crossing, divergence.
Non-repaint.
It’s free!
Simple settings.
It is designed for investment positions on daily/weekly/monthly stock markets, but there are no restrictions on using it on intraday forex.
Disadvantages of the indicator:

No
No Arrows.
Perhaps in the 60’s, when the Coppock Curve was developed, this indicator was more effective. But in these days of active trading with automated EAs, you have to try hard to get proof that the Coppock Curve greatly increases your chances of making profits in the forex market.
Combine this indicator with other trading methods and do extensive testing before risking any real money.

Download Coppock Curve Indicator for MT4 indicator for Free Now!