What is the Coppock Curve?

What is the Coppock Curve?

The Coppock Curve is a long-term momentum indicator originally designed for equity markets to spot significant bottoms. Forex traders adapt it to identify when a major downtrend may be ending.

How the Indicator Works

• Calculation: Weighted moving average of the sum of two rate-of-change values (commonly 14 and 11 months).
• Signal line: Rising through zero suggests a potential long-term upturn.
• Focus on weekly/monthly charts: The indicator is too slow for intraday use.
• Best for confirmation: Combine with other tools rather than using it alone.

Trade Considerations

• Use higher timeframes: Weekly or monthly data provides reliable signals.
• Confirm with price action: Look for break of structure or higher lows.
• Manage expectations: Signals can be early; allow time for follow-though.
• Risk control: Even long-term signals need stop-loss plans.