📊 TECHNICAL
Coppock Curve
A long-term momentum indicator built from weighted-averaged rate-of-change curves, originally designed to time major buying opportunities in the broad market.
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Live Demo — Coppock Curve applied to NIFTY 50 (illustrative)
PriceEMA(9)EMA(21)SMA(20)
What is the Coppock Curve?
The Coppock Curve was developed by economist Edwin Sedgwick Coppock in 1962, originally to help institutional investors know when to buy the S&P 500 for the long term. Coppock combined two rate-of-change measures into a single weighted moving average curve to flag major long-term buy zones.
Formula
ROC14 = ROC(Close, 14)
ROC11 = ROC(Close, 11)
Coppock Curve = WMA(ROC14 + ROC11, 10)Parameters
| Parameter | Default | Description |
|---|---|---|
| Short ROC Period | 11 | Faster rate-of-change lookback |
| Long ROC Period | 14 | Slower rate-of-change lookback |
| WMA Length | 10 | Weighted moving average smoothing applied to the summed ROCs |
Signal Interpretation
- The classic buy signal is the curve turning upward from below zero, historically tied to major long-term bottoms.
- Sustained readings above zero and rising indicate healthy long-term upward momentum.
- A falling curve above zero warns long-term momentum is decelerating.
- Designed as a buy-only long-term timing tool, not a symmetric sell signal.
- Long lookbacks make it unsuitable for short-term trading decisions.
Tips & Best Practices
- Best used on monthly/weekly charts of broad market indices, matching its original design.
- Treat upward turns from deep negative territory as long-term accumulation signals, not tactical entries.
- Combine with fundamental or macro context for buy-and-hold investors.