coppock curve
Coppock curve indicator was created by Edwin Sedge Coppock.
The coppock curve is a momentum indicator that was mainly created to determine the buy entry in the stock market.Beside buy entry for stock sell signal can also be identify though not recommended.
Coppock curve has 3 period,that is 10 period,14 period and 11 period.
Coppock curve is an momentum oscillator and therefore has an oscillation at point 0.0000.
Coppock curve is therefore calculated using the following formula which is based on the 3 periods;
Coppock curve =( WMA of 10period) of (14 period ROC+11period ROC)
Where as;
WMA is Weight Moving Average;
ROC is Rate Of Change indicator;
Since coppock curve has an oscillation at point 0,it therefore follows that when the coppock curve falls below 0.000 that will be an indication that the market has become an oversold market thus the trader should close any sell position and enter a buy position.On the other hand though not recommendable ,when the coppock curve has risen above 0.000,that will be an indication of an overbought market thus the trader should close any buy position and enter a sell position.This is indicated as from the candle sticks chart below;
From the candle sticks chart above,there are 3 points,point A,B and C. Point A is the point below 0.000 while point B is the point above 0.000 .Point C represents the coppock curve.
At point A ,the coppock curve has fallen below 0.000 thus an indication of an oversold market.This will signal the traders to close any sell position and open a buy position since the market is starting to move upwards.
On the other hand though not recommendable,at point B ,the coppock curve has risen above 0.000 thus an indication of an overbought market.This will signal the traders to close any buy position and enter a sell position since the market is starting to move downwards.
The coppock curve is a momentum indicator that was mainly created to determine the buy entry in the stock market.Beside buy entry for stock sell signal can also be identify though not recommended.
Coppock curve has 3 period,that is 10 period,14 period and 11 period.
Coppock curve is an momentum oscillator and therefore has an oscillation at point 0.0000.
Coppock curve is therefore calculated using the following formula which is based on the 3 periods;
Coppock curve =( WMA of 10period) of (14 period ROC+11period ROC)
Where as;
WMA is Weight Moving Average;
ROC is Rate Of Change indicator;
Since coppock curve has an oscillation at point 0,it therefore follows that when the coppock curve falls below 0.000 that will be an indication that the market has become an oversold market thus the trader should close any sell position and enter a buy position.On the other hand though not recommendable ,when the coppock curve has risen above 0.000,that will be an indication of an overbought market thus the trader should close any buy position and enter a sell position.This is indicated as from the candle sticks chart below;
From the candle sticks chart above,there are 3 points,point A,B and C. Point A is the point below 0.000 while point B is the point above 0.000 .Point C represents the coppock curve.
At point A ,the coppock curve has fallen below 0.000 thus an indication of an oversold market.This will signal the traders to close any sell position and open a buy position since the market is starting to move upwards.
On the other hand though not recommendable,at point B ,the coppock curve has risen above 0.000 thus an indication of an overbought market.This will signal the traders to close any buy position and enter a sell position since the market is starting to move downwards.
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