The Coppock Curve chart is a smoothed momentum indicator that highlights shifts in the long-term trend of an asset. Traders that consider this indicator helpful when it comes to identifying long-term buying opportunities generally prefer to select a long period when viewing it. Generated directly from GNY’s proprietary data warehouse, our Coppock Curve chart has the ability to be viewed over a 365-day span.
The Coppock Curve chart is displayed as an oscillating line graph chart overlaid with a horizontal zero line. Over a period of time, the rate of change in an asset’s price will cause the graph’s line to oscillate above and below the zero line. This movement above and below the zero line is what produces the chart’s trading signals.
When the oscillating line moves from below the zero line to above it, that is a bullish signal for traders seeking an entry. Conversely, when the oscillating line moves from above the zero line to below it, it indicates that a bearish move may be ahead and traders should consider their positions.
Weaker buy signals are produced when the oscillating line positioned above the zero line makes a move down towards the zero line but turns upwards again before crossing into negative territory. Weaker sell signals are produced when the oscillating line positioned below the zero line makes a move up towards the zero line but turns downward again before crossing into positive territory.
Since the Coppock Curve is a long-term lagging indicator, it is advisable to consult additional charts within the Range Report such as the RSI, Stochastic, McClellan Oscillator, and Moving Average Convergence/Divergence (MACD) as extra confirmation for your entry and exit points.