Trade Forex Trading

Learn Forex Lessons, Strategies and Technical Analysis

Coppock Curve Forex Technical Analysis and Coppock Curve Forex Trading Signals

Developed by Edwin Sedgwick Coppock

 

This indicator was used for technical analysis of Stocks & Commodities in the beginning but was later used to trade Forex.

Coppock Curve Technical Indicator

 

 

The principle behind this is the psychology of trading, based on the theory that human habit is predictable. And price movement always oscillates in a zigzag manner.

 

The principle of adaptation-level applies to how price reacts at certain levels, stock and currency prices will react in the same way or pattern as those observed historically.

 

 

Forex Technical Analysis and Generating Forex Trading Signals

In Forex trading, The moving average is the simplest form of an adaptation-level, the price will oscillate around the moving average. This forms the basis of this indicator, which is a longer term oscillator based on this adaptation-levels(moving average), but in a different way.

 

Oscillators usually begin by calculating a % change of the current price from some previous price point, where the previous price point is the reference point (adaptation-level).

 

Edwin Coppock reasoned that the market participants' emotional state could be quantified by summing up the % changes over the recent past to get a general sense of the market's longer term momentum.

 

For example, If we compare prices relative to a year ago and we see that this month the market is up 20% compared to a year ago, last month it was up 15% over a year ago, and 10%, 7.5% and 5% respectively the months before that, then we may determine that the market is gaining momentum.

 

Basic signals can also be generated using the Coppock Curve to trade market reversals from extreme price levels. Looking for divergence and trend line breaks may also be combined to confirm the signal.

 

Implementation

The input levels of this indicator may need to be adjusted to better fit the dynamic nature of the foreign exchange currency markets trading.

 

Coppock Curve has a zero line reference point, but this does not represent the adaptation-level but it is only a visual reference point only.

Forex Market Sentiment

The EURUSD is at a major support level, Open an account and start trading EURUSD which is oversold and at a major support level: Read The Article "Support and Resistance levels"

Another reason to start being bullish on the EURUSD and EURJPY is Risk Appetite vs The Risk Averse sentiment used when trading high yielding currencies vs the US Dollar and the Japanese Yen when world economies start reporting data that is supporting economic growth: Read The Article "Risk Appetite vs The Risk Averse"


Eurozone Economic Growth Gains Momentum in November - Eurozone economic growth accelerated to its fastest pace and was at an all-time high, order books grew and factories were prompted to add more workers and raise the prices of their goods as the economic environment in Europe grew the fastest as shown by economic data – November Composite PMI for manufacturing and services grew to the strongest in 18 months and was at an all-time high of 54.1, up from 53.3 in October. There are two PMI data reports - one for manufacturing and the other one for services. The PMI for manufacturing was at an all-time high of 34 months and rose to 53.7 in November while that of services rose to an all-time 11 months high of 54.1; Marking a strong expansion in economic growth and signaling that the recovery in Europe is continuing to gather momentum thanks to the €1.7 trillion quantitative-easing program being carried out by ECB in Europe. IHS Markit has said that companies are on boarding new staff at the fastest pace ever since 2008, as the prices of goods increased the most in five years as companies continued to pass the production cost to their consumers – the November PMI showed the steepest monthly increase in business activity with plenty of signs that the economic growth will continue to accelerate as the inflation in Europe continues to intensify steadily. Open an account and start trading EURUSD and EURJPY today.


Major Market Mover - Non Farm Payrolls on Friday: Open an Account Today and Trade NFP on Friday

First OPEC Deal on Oil production cut in 8 years fuels more risk appetite: Open an Account Today - Don't Miss Out on the trades


Read The Articles: Eurozone Economic Growth Gains Momentum in November - Fueling Risk Appetite in FX trading


Regulated Broker

Poland FX Seminar Gala

XM Account Holders Attend Poland FX Seminar

XM Account Holders Hungary Seminar

Malaysia Seminar

XM Account Holders Phillipines Seminar

XM Account Holders Thailand Seminar

Regulated Online Broker

Australia Regulated Forex Broker

Forex Bonus Up To $5000

Silver and Gold

 

Top MQL5 EAs - Access Automated Trading Programs From the MT4 Trading Platform

MQL5 Expert Advisors Library

 

Top MQL5 Signals - Access Top MQL5 Signals From the MT4 Trading Platform

Top MQL5 Forex Signals on MetaTrader 4 Platform

 

Top MQL5 EAs - Access Top MQL5 Signals From the MT4 Trading Platform

Top MQL5 Forex Signals on MQL5 Website

Regulated Broker

 

Top MQL5 EA Robots

Top MQL5 Automated Trading Expert Advisors

Open A Forex Account

Open Demo Account
Open Real Account

Last Call $5K Bonus

Copy Top MQL5 Signals

Top MQL5 Forex Signals Service Providers on MetaTrader 4

XM MQL5 Page

XM MQL5 Signals Page

Top MQL5 Signals

Forex Account

Open Demo Account
Open Real Account