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Coppock Curve Technical Indicator

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

Coppock Curve 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.



Technical Analysis of Coppock Curve Technical Indicator

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 Coppock curve, 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.

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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 Indicator by trading reversals from extreme price levels. Looking for divergence and trend line breaks may also be combined to confirm the signal.




The input levels of Coppock Curve Indicator may need to be adjusted to better fit the dynamic nature of the foreign exchange currency markets and forex 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.

Market Sentiment 2015:

Quantitative Easing(QE): This is when a Central Bank decides to start printing money to buy Bonds so as to stimulate Economic Growth.

ECB QE: On January 22 2015, ECB - Euro Zone Central Bank announced it was going to start (on March 2015) Quantitative Easing for Euro Zone so as to stimulate growth in the EU, devalue the EURO so that its EU exports become cheaper and also bring inflation up to around 2%.

What it Means: This means the value of the EURO is going to depreciate against all other currencies. (Not at once, but gradually)

How Long will the QE Last: From March 2015 to September 2016 - Traders are already starting to position themselves for this move even before it starts.

Market Outlook: Very Bearish for EURUSD, and EURJPY - Also for GBPUSD, GBPJPY, and AUDUSD (No Need For Technical Analysis - This is Risk Appetite -Risk Averse Speculation).

Do Not Be Left by This Once in a Lifetime Opportunity: Open an account and start selling Euros and position yourself early - ECB has got your back on this one - 1.1 Trillion Euros is What Has Been Set For This QE (€60 billion per month for 19 months). - Others are already profiting - Read the article How to Fast Track Account Opening and Open an account now.

Strategy: Sell the retracements and use 1 Hour and M15 Charts to look for best entry and exit points - Also checkout Money Management Rules.

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