The Coppock Curve is a long-term momentum indicator designed to help traders and investors identify potential buy signals at the early stages of a new uptrend. It does this by combining two rate-of-change (ROC) calculations with a weighted moving average, generating a smooth curve that reflects the strength and direction of long-term price momentum.
How It’s Calculated
- The indicator takes the ROC over 14 and 11 periods
- These values are summed together
- A weighted moving average is then applied to create the final Coppock Curve
How to Interpret It
- Cross Above Zero: Signals a potential long-term buying opportunity
- Cross Below Zero: May suggest weakness, but the Coppock Curve is primarily designed for buy signals
- Divergence: When price moves one direction and the Coppock Curve moves the other, it may indicate a possible trend reversal
How to Use It in FX Replay
- Apply the Coppock Curve to identify turning points in longer timeframes (e.g., daily or weekly).
- Use it to validate entries into longer-term trades, especially during periods of recovery from a market downturn.
- Combine with RSI, MACD, or price-structure tools to strengthen trade setups and manage risk.
Use Cases
- Long-Term Investors: Identify the early stages of bull markets
- Momentum Scanning: Filter assets where the curve is crossing above zero on strong volume
- Confirmation Tool: Pair with other indicators to avoid false positives and fine-tune entries
