The Coppock curve or Coppock indicator is a technical analysis indicator for long-term stock market investors created by E.S.C. Coppock, first published at Barron's Magazine on October 15, 1962.
Indikator ini dirancang untuk digunakan pada skala waktu bulanan. Ini adalah jumlah dari tingkat perubahan 14 bulan dan tingkat perubahan 11 bulan, yang diperhalus dengan rata-rata bergerak 10 periode.
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Coppock, founder of Trendex Research in San Antonio, Texas, is an economist. He was asked by the Episcopal Church to identify buying opportunities for long-term investors. He thought the market downturn was like grief and needed a period of mourning. He asked church bishops how long it would take people, their answers were 11 to 14 months and so he used that period in his calculations.
The buy signal is generated when the indicator is below zero and is turned upwards from the trough. No sell signal is generated (which is not the design). The indicator is to follow the trend, and based on the average, so by virtue of its nature it does not choose the basis of the market, but rather shows when the rally has become established.
Coppock designed the indicator (originally called "Trendex Model") for the S & amp; P 500, and has been applied to similar stock indices such as the Dow Jones Industrial Average. This is not considered suitable for commodity markets, since the basis is more than the surge in spikes found in stocks.
Video Coppock curve
Variations
Although designed for monthly use, daily calculations during the same period can be made, changing the period to 294-days and the rate of 231 day changes, and 210-day weighted moving average.
A slightly different version of the indicator is still used by the Investors Chronicle , the British investment magazine. The main difference is that the Investors Chronicle version does not include sell signals, although it emphasizes that they should be treated with caution. This is because such signals can only be a decline in a sustainable bull market.
Jerry Samet has successfully used the Coppock indicator using weekly cap data. monthly closing. This indicator is helpful with the definition of medium-term market movement from 6 weeks to 12 months. Mike Scott has determined that the weekly Coppock used in conjunction with Daily Business Market Directions Investors mention that Coppock buy signals that occur within plus or minus 2 weeks of IBD Follow-up Day correctly identify the success of the 79% rally of time in the bull market and 45% of the time in the bear market. The success here is determined by the NASDAQ market that rallies at least 9 or 10% for at least a period of 5 or 6 weeks.
Maps Coppock curve
References
External links
Source of the article : Wikipedia
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