Coppock Curve
A long-term price momentum indicator used primarily to recognize major bottoms in the stock market. It is calculated as a 10-month weighted moving average of the sum of the 14-month rate of change and the 11-month rate of change for the index.
Also known as the "Coppock Guide".
Investopedia Commentary
The Coppock formula was introduced in Barron's in 1962 by Edwin Sedgwick Coppock.
A buy signal is formed when there is an upturn in the curve after an extreme low in the curve. A sell signal is formed when there is a higher peak in stock prices but a lower peak in the Coppock curve. These are the basic signals, more signals and interpretations are seen at more advanced levels.
Related Links
Moving Averages Tutorial
Calculating The Dow Jones Industrial Average
See also: Dow Jones Industrial Average, Indicator, Moving Average, Technical Analysis, Weighted