Coppock Curve

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".

BREAKING DOWN '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.

RELATED TERMS
  1. Normal Yield Curve

    A yield curve in which short-term debt instruments have a lower ...
  2. Flat Yield Curve

    A yield curve in which there is little difference between short-term ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, ...
  4. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments ...
  5. Humped Yield Curve

    A relatively rare type of yield curve that results when the interest ...
  6. Positive Butterfly

    A non-parallel yield curve shift in which short- and long-term ...
Related Articles
  1. Technical Indicators

    Using the Coppock Curve to Generate Stock Trade Signals

    How the Coppock Curve momentum indicator can help you isolate buying opportunities and exit points in the stock market.
  2. Professionals

    Yield Curves

    CFA Level 1 - Yield Curves. Learn how governments can influence short and long-term interest rates. Discusses the various shapes of yield curves and how they are formed.
  3. Professionals

    Yield Curve Risk

    CFA Level 1 - Yield Curve Risk. Learn how yield curve risk can affect your bond portfolio and how the various shifts in the yield curve relate to interest-rate risk.
  4. Bonds & Fixed Income

    Yield Curve

    Learn more about how this curve is used to predict changes in economic output and growth.
  5. Investing

    Trade Bond ETFs Using Yield Curves

    Different types of yield curves provide important insights for trading bond-based securities.
  6. Professionals

    Yield Curve

    Yield Curve
  7. Bonds & Fixed Income

    Advanced Bond Concepts: Term Structure of Interest Rates

    The term structure of interest rates, also known as the yield curve, is a very common bond valuation method. Constructed by graphing the yield to maturities and the respective maturity dates ...
  8. Professionals

    Yield Curves

    FINRA/NASAA Series 65: Section 8 Yield Curves. In this section normal, inverted and flat yield curves and yield spreads.
  9. Bonds & Fixed Income

    The Impact Of An Inverted Yield Curve

    Find out what happens when short-term interest rates exceed long-term rates.
  10. Fundamental Analysis

    Understanding Term Structure of Interest Rates

    The term structure of interest rates is a common method of valuing bonds.
RELATED FAQS
  1. What is the Coppock curve?

    Technical analysis claims the ability to forecast future movements of financial instruments, such as stocks or commodities, ... Read Answer >>
  2. How can the yield curve help me make investment decisions?

    Learn about the yield curve, and discover why this chart is an important economic indicator. How do Treasury bond yields ... Read Answer >>
  3. Why are the term structure of interest rates indicative of future interest rates?

    Learn why economists believe the term structure for interest rates reflects investor expectations for future interest rates ... Read Answer >>
  4. What is the current yield curve and why is it important?

    Understand what the current yield curve represents, and learn how market analysts commonly interpret various changes in the ... Read Answer >>
  5. What is the difference between term structure and a yield curve?

    Understand the difference between the term structure of interest rates and a yield curve, if any. Learn what the yield curve ... Read Answer >>
  6. Where on the Internet can I find yield curves over various periods?

    Find out where to locate reliable yield curve information on the Internet, including the U.S. Department of the Treasury ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center