Author: Edward Coppock
The Coppock Indicator, originating from the mind of Edward Coppock back in 1962, is a well-known tool among traders. This indicator is designed to signal long-term buying opportunities (initially, it was only for buying) by calculating a 10-period weighted Moving Average of two rates of change.
In its classic form, the Coppock Indicator utilizes two specific periods - 14 and 11 - to help traders identify potential entry points. The beauty of this version is that it allows you to tweak the parameters of the underlying indicators to better suit your trading style.
Input Parameters Explained
- ROC1Period (default = 14): The period for the first rate of change in the sum.
- ROC2Period (default = 11): The period for the second rate of change in the sum.
- MAPeriod (default = 10): The period for calculating the Moving Average of the sum.
- MAType (default = 3 (WMA)): This defines the method of the moving average applied to the sum. It’s best to stick with the default settings unless you’re sure of what you’re doing.
Understanding how to utilize the Coppock Indicator effectively can make a significant difference in your trading strategy. So, give it a try and see how it fits into your approach!
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