Coppock Indicator

Coppock Indicator

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

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

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

However, nothing restricts you from loading the Coppock on intraday charts – for example, on the hourly price chart (as shown in the screenshot below):

Pay attention to the area under the price chart. The original Coppock curve is colored green. Thus, Coppoc is a smoothed momentum indicator.

How do you trade with Coppock?
The classic signal is Coppock crossing the zero level from the bottom up.

This signal should be used to open long positions. Let me remind you that the indicator is designed specifically for buying in the stock markets and holding positions for a long time.

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

Closing a position on an opposite signal. Or use your own position management rules.

Sell Signal
This is an example (from the EURCHF intraday forex market) of a sell signal, which is formed when the main line of the indicator (green) crosses the zero line from top to bottom.

Place a stop loss above the bar’s recent highs and look for a reversal signal that could trigger a short cut, exit, or reversal into a long position.

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

Advantages of the Coppock indicator:

It can give both buy and sell signals.
No recoloring.
It’s free!
Simple settings.
It is intended for investment positions in the daily/weekly/monthly stock markets, but has no restrictions on its use in the intraday Forex market.
Disadvantages of the indicator:

No arrows.
Perhaps in the 60s, when Coppock was developed, this indicator was more effective. But in these days of active trading with automated advisers, you will have to work hard to get evidence that Coppock significantly increases your chances of making a profit in the forex market.
Combine this indicator with other trading methods and test thoroughly before risking real money.

Download Coppock Indicator for MT5 indicator for Free Now!