What it is
Edwin Coppock published the curve in 1962 to find long-term buying points in the US stock market. The 14 and 11 month lengths came from his idea of how long people take to recover from a loss. It was only ever meant to signal buys; many traders now also read a turn down from above 0 as a warning.
On daily and weekly charts of US30 or NAS100 it gives a slow read on whether momentum is recovering or fading. It is not a timing tool for intraday entries.
How it is calculated
1. Work out the 14 period rate of change: the percentage change in close over 14 candles. 2. Work out the 11 period rate of change in the same way. 3. Add the two together. 4. Smooth the total with a 10 period weighted moving average (recent candles weigh most). 5. The result oscillates around 0 with no fixed limits.
Settings
| Setting | Default | Range | What it changes |
|---|---|---|---|
| ROC long | 14 | 2 to 100 | The longer rate of change length. On monthly charts 14 means 14 months. |
| ROC short | 11 | 2 to 100 | The shorter rate of change length. |
| WMA length | 10 | 2 to 100 | The weighted moving average that smooths the sum. Higher is smoother and later. |
How to read it
How to trade it
- 1
Use a weekly or monthly chart of US30 or NAS100, or a daily chart for a shorter version.
- 2
Wait for the curve to make a low below 0 and then rise for one full closed candle.
- 3
Confirm with price, for example a weekly close above the previous week's high.
- 4
Place the stop below the most recent swing low on the same chart, which on a weekly US30 chart may be many hundreds of points away, so size small.
- 5
Hold while the curve rises; consider trimming when it turns down from above 0.
The buy idea is cancelled if price closes below the swing low that formed the turn, or if the curve turns back down before reaching 0.
WickSpeak writes a plain-English reading of the Coppock Curve on the live candle: what the line is, whether long-term momentum is recovering or fading now, how traders use that and what would prove it wrong. In Playbook, a condition can check when the curve crosses above or below zero, stays above or below zero, or is rising or falling, so a weekly 'curve is rising' condition can act as a slow trend filter for a faster play.
WickSpeak Coppock Curve is one of the extra WickSpeak versions of the oscillators. The line is coloured by strength: faint when the reading is weak, glowing when it is strong, mint above the zero line and pink below it. Crosses of the zero line are marked only once the candle has closed, so a marker never vanishes after it appears. A gold marker shows a stretched reading, the strongest few percent of the indicator's own range. Divergences between price and the line are drawn on both the chart and the indicator, and a chip shows the same reading on a higher timeframe.
Best markets and timeframes
Built for monthly charts of broad stock indices such as US30 and NAS100. Weekly and daily charts give more signals. It is a poor fit for short intraday charts and for markets that range for long periods.
Common mistakes
- Using it on a 5 minute chart and expecting the same meaning. It was built for months, not minutes.
- Waiting for a cross of 0 and calling that the main signal. The original signal is the turn up below 0.
- Treating every turn down as a sell. Coppock designed it as a buy signal tool.
Works well with
Questions traders ask
What timeframe should the Coppock Curve be used on?
It was designed for monthly charts of stock indices. Many traders also use it on weekly charts. On lower timeframes the same settings simply describe shorter swings.
What is the Coppock Curve buy signal?
The buy signal is the curve turning upward while it is below 0. It shows momentum has stopped falling after a significant decline.
Does the Coppock Curve give sell signals?
Originally no. Some traders treat a turn down from above 0 as a warning to tighten stops, but that was not part of Coppock's method.
Why are the settings 14 and 11?
Coppock based them on the length of time people were said to take to grieve a loss, which he linked to how long markets need to recover from a major fall. They are kept today mostly by convention.