> For the complete documentation index, see [llms.txt](https://chartschool.stockcharts.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://chartschool.stockcharts.com/table-of-contents/technical-indicators-and-overlays/technical-indicators/coppock-curve.md). # Coppock Curve ## What Is the Coppock Curve? The Coppock Curve is a momentum indicator developed by Edwin “Sedge” Coppock, who was an economist by training. Coppock introduced the indicator in *Barron's* in October 1965. The original goal of this indicator was to identify long-term buying opportunities in the S\&P 500 and Dow Industrials.

The signal is very simple. Coppock used monthly data to identify buying opportunities when the indicator moved from negative territory to positive territory. Although Coppock did not use it for sell signals, many technical analysts consider a cross from positive to negative territory as a sell signal. ## Calculating the Coppock Curve The formula for Coppock Curve uses a weighted moving average of two Rate of Change (ROC) indicators. ``` Coppock Curve = 10-period WMA of (14-period RoC + 11-period RoC) WMA = Weighted Moving Average ROC = Rate of Change ``` The ROC indicator is a momentum oscillator that oscillates above and below the zero line. Coppock used 11 and 14 periods because, according to an Episcopal priest, this was the average mourning period when grieving the loss of a loved one. Coppock theorized that the recovery period for stock market losses would be similar to this timeframe. {% hint style="info" %} **Learn More:** [Rate of Change (ROC)](/table-of-contents/technical-indicators-and-overlays/technical-indicators/rate-of-change-roc.md) {% endhint %}

Coppock Curve is based on a weighted moving average of two ROC indicators

The Rate of Change indicators were then smoothed with a weighted [moving average](/table-of-contents/technical-indicators-and-overlays/technical-overlays/moving-averages-simple-and-exponential.md). As its name implies, a weighted moving average puts more weight on recent data and less weight on older data. For example, a three-period WMA would multiply the first data point by one, the second by two, and the third by three. The sum of these three numbers is then divided by six, the sum of the weightings (1 + 2 + 3), to create a weighted average. The table below shows the calculation of Coppock Curve using the data in the chart above.

Spreadsheet showing Coppock Curve calculation

Click below to download the spreadsheet. {% file src="/files/QEsKSQJZjro5oLMFxqrX" %} ## Interpreting the Coppock Curve ### Identifying Long-Term Signals Using monthly data, this indicator will not trigger very many signals. A buy signal triggers with a cross into positive territory, while a sell signal triggers with a cross into negative territory. Unsurprisingly, there have been only four sell and four buy signals over the 30 years shown in the S\&P 500 chart below.

Coppock Curve on a monthly chart triggers very few signals

Coppock focused exclusively on buy signals from his indicator, and in all four cases shown on the chart, the buy signals (green dotted lines) resulted in multi-year uptrends for the S\&P 500. Chartists following the first two sell signals on the chart would have avoided those two bear markets. The February 2001 sell signal would have avoided most of the bear market from 2000 to 2002. The June 2008 sell signal would have gotten investors out before the market plunge in the second half of 2008. These sell signals could have been used to simply exit the stock market and move into cash, which would have lowered market exposure and overall risk. However, the sell signals are not always as reliable as the buy signals. The 2016 dip into negative territory did not go very far below the zero line or stay there for very long. In 2022, the S\&P 500 trend turned up almost as soon as the Coppock Curve turned negative. For this reason, it is important to use the Coppock Curve signals in conjunction with other technical analysis techniques. ### Adjusting the Coppock Curve As noted above, the Coppock Curve is simply a smoothed momentum oscillator. The Rate of Change indicator measures momentum and the weighted moving average smooths the data. This means the indicator can be used on any timeframe. Intraday, daily and weekly data can be used to fit one's trading/investing style and time horizon. The chart below shows the Coppock Curve using weekly data on the Dow Industrials. As expected, the weekly chart produces many more signals than a monthly chart.

Coppock Curve on a weekly chart produces many more signals

In addition to different timeframes, the parameters can be adjusted to make the indicator faster or slower. A shorter Rate of Change (ROC) setting will make the Coppock Curve more sensitive and faster, while a longer setting will make it less sensitive and slower. The chart below shows daily bars for the S\&P 100 ($OEX) and the Coppock Curve (20,10,10). This setting makes the Coppock Curve a little less sensitive, which may be better suited for daily charts.

Adjusting Coppock Curve settings can reduce the number of signals on daily charts

## The Bottom Line The Coppock Curve is simply a smoothed momentum oscillator. Even though it was originally designed for monthly charts and long-term analysis, it can be used on intraday, daily or weekly charts and the settings can be adjusted to suit one's style. The main signals are generated with crosses above and below the zero line. More aggressive chartists can consider looking for bullish and bearish divergences to anticipate such crossovers. Use caution, however. Divergences do not always result in trend reversals because the trend can simply slow and continue in the same direction. *** ## Charting the Coppock Curve ### Using with SharpCharts The Coppock Curve can be found in the Indicators section below the chart. Users can adjust the settings by changing the numbers in the Parameters box. The indicator can then be positioned “behind price,” “above” the main window or “below” the main window. It helps to change the color when placing it behind the price. Chartists can also add a moving average to the indicator which acts like a signal line, similar to the MACD. [Click here for a live version of this chart.](https://stockcharts.com/sc3/ui/?s=IWM\&a=2385924168\&p=D\&b=5\&g=0\&id=p99953778905)

{% hint style="info" %} **Learn More:** For more details on the parameters used to configure Mass Index indicators, please see our [SharpCharts Parameter Reference](https://help.stockcharts.com/charts-and-tools/sharpcharts/sharpcharts-workbench/editing-sharpcharts/sharpcharts-parameter-reference#coppock_curve) in the Support Center. {% endhint %} ### Using with StockChartsACP This indicator can be added from the Chart Settings panel for your StockChartsACP chart. The indicator can be positioned above, below, or behind the security's price plot.

[Click here for a live version of this chart.](https://schrts.co/ZzzfzbwY) By default, this indicator is calculated using 14- and 11-period Rate of Change (ROC) indicators and a 10-period weighted moving average (WMA). These parameters can be adjusted to meet your technical analysis needs. A reference line is automatically added at 0 to make crossover signals easy to spot. ## Scanning for the Coppock Curve StockCharts members can search for stocks based on Coppock Curve values. Below are some example scans that can be used for Coppock Curve-based signals. Simply copy the scan text and paste it into the Scan Criteria box in the [Advanced Scan Workbench](https://stockcharts.com/def/servlet/ScanUI). Members can also set up alerts to notify them when a Coppock Curve-based signal is triggered for a stock. Alerts use the same syntax as scans, so the sample scans below can be used as a starting point for setting up alerts as well. Simply copy the scan text and paste it into the Alert Criteria box in the [Technical Alert Workbench](https://stockcharts.com/h-al/al). ### Coppock Curve Crosses above Zero This simple scan searches for stocks where the Coppock Curve crossed from negative territory to positive territory and daily volume was above the 50-day moving average of volume. In other words, the bullish crossover occurred with expanding volume. ``` [type = stock] AND [country = US] AND [Daily SMA(20,Daily Volume) > 100000] AND [Daily SMA(60,Daily Close) > 20] AND [Daily Coppock(20,10,10) crosses 0] AND [Daily Volume > Daily SMA(50,Daily Volume)] ``` ### Coppock Curve Crosses below Zero This simple scan searches for stocks where the Coppock Curve crossed from positive territory to negative territory and daily volume was above the 50-day moving average of volume. In other words, the bearish crossover occurred with expanding volume. ``` [type = stock] AND [country = US] AND [Daily SMA(20,Daily Volume) > 100000] AND [Daily SMA(60,Daily Close) > 20] AND [0 crosses Daily Coppock(20,10,10)] AND [Daily Volume > Daily SMA(50,Daily Volume)] ``` {% hint style="info" %} For more details on the syntax to use for Coppock Curve scans, please see our [Scan Syntax Reference](https://help.stockcharts.com/scanning-and-alerts/scan-writing-resource-center/scan-syntax-reference/scan-syntax-technical-indicators#coppock_curve_coppock) in the Support Center. {% endhint %} ## Additional Resouces ### Recommended Books John Murphy's [*Technical Analysis of the Financial Markets*](https://a.co/d/2g3jchk) has a chapter devoted to momentum oscillators and their various uses. Murphy covers the pros and cons as well as some examples specific to Rate of Change. Martin Pring's [*Technical Analysis Explained*](https://a.co/d/ahkphoZ) shows the basics of momentum indicators by covering divergences, crossovers and other signals. There are two more chapters covering specific momentum indicators with plenty of examples. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://chartschool.stockcharts.com/table-of-contents/technical-indicators-and-overlays/technical-indicators/coppock-curve.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.