Definition of 'Coppock Curve'
A long-term price momentum indicator used primarily to recognize major bottoms in the stock market. It is calculated as a 10-month weighted moving average of the sum of the 14-month rate of change and the 11-month rate of change for the index.
Also known as the "Coppock Guide".
Investopedia explains 'Coppock Curve'
The Coppock formula was introduced in Barron's in 1962 by Edwin Sedgwick Coppock.
A buy signal is formed when there is an upturn in the curve after an extreme low in the curve. A sell signal is formed when there is a higher peak in stock prices but a lower peak in the Coppock curve. These are the basic signals, more signals and interpretations are seen at more advanced levels.