The Coppock Curve, or Coppock Indicator, by Edwin Coppock, first published in Barrons magazine 1962, is a smoothed rate of change style indicator designed to identify long-term buy signals on a monthly chart.
The indicator is calculated as the sum of 14-period and 11-period ROC values (see Momentum and Rate of Change), smoothed with a 10-period WMA (see Weighted Moving Average). Adding the two ROCs has the effect of averaging their values.
Coppock = WMA of (ROC + ROC)
Coppock designed the indicator for use on a monthly time scale, which can be viewed in Chart with Ctrl-M (see Main Window). In other timebases (days or weeks) Chart uses the same 14, 11 and 10 periods, which may or may not be useful, since months were what Coppock intended.
The indicator generates a buy signal for long-term investors when it’s below zero and turns upwards from a trough. The nature of the calculation means this will be well after the low in prices, the signal is meant to indicate a good rally has been established.
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Chart is free software; you can redistribute it and/or modify it under the terms of the GNU General Public License as published by the Free Software Foundation; either version 3, or (at your option) any later version.