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Coppock Curve Bitcoin Analysis and Coppock Curve Signals

Developed by Edwin Sedgwick Coppock

This btcusd indicator was used for technical analysis of Stocks & Commodities in the start but was later used to trade Bitcoin.

Coppock Curve Bitcoin Indicator - Coppock Curve Indicator

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

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

Bitcoin Crypto Currency Analysis and How to Generate Signals

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

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

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

For example, If we compare bitcoin prices relative to a year ago and we see that this month the btcusd market is up 20% compared and analyzed to a year ago, last month it was up 15 % over a year ago, & 10 %, 7.50% & 5% respectively the months before that, then we may ascertain that the btcusd market is gaining momentum.

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

Implementation

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

Coppock Curve has got a zero line reference point, but this does not represent the adaptation levels but it's only a visual reference point only.

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