Coppock Indicator

Creator: Edwin Coppock

Period: 14

Period: 11

In the Coppock indicator, two lines are plotted below the chart.

1 The green line represents Coppock indicator

2 – Red line represents the Average line of the Coppock indicator

Coppock designed an indicator based on ROC (Rate of Change) data of the 14 and 11 month prices. During that time, he learned that Episcopal priests suggested that that is the average mourning period when someone loses a loved one. According to Coppock, the recovery period for the stock market would be similar to this period following a shock.

As part of the Coppock indicator, a weighted moving average is applied to the ROC indicator, which gives more weight to the most recent data. This is a smoothed momentum oscillator.

A move above the zero line of the Coppock indicator indicates a bullish trend. A Coppock indicator that moves below the zero line indicates a bearish trend.

The Coppock indicator is used on a variety of timescales, including weekly, daily, and even intraday.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.