• 2 days Did Big Bank Earnings Just Signal ‘Real’ Economic Recovery?
  • 3 days The Cannabis Industry Is Looking To Fill The Employment Gap
  • 6 days Earnings Beat Isn’t Enough for S&P 500 Q3
  • 8 days The New World Tax Order
  • 9 days Is Crypto Finally Ready To Pay The Piper?
  • 10 days Is It Time To Buy The Global Gaming Market Dip?
  • 13 days Even The Mafia Has A Millennial Problem
  • 15 days Zuckerberg Loses Billions in Social Media Outage
  • 16 days ‘Pandora Papers’ Leak Reveals More Financial Crime
  • 17 days US Retail Has A Major Supply Chain Problem
  • 20 days China Has Set Out To Crush Crypto...Again
  • 21 days Top Performing Cannabis Stocks of the Year
  • 22 days Millennials Could Power A 20-Year Bull Stock Market
  • 27 days The Million-Dollar Question: Will China Bail Out Evergrande?
  • 29 days 3 Restaurant Stocks In Full Recovery Mode
  • 29 days Bitcoin Is Driven By Testosterone
  • 34 days Quantum Computing Is The Newest Megatrend In Silicon Valley
  • 35 days How To Invest In The Cybersecurity Boom
  • 37 days Investors Are Patient With Unprofitable Giants
  • 39 days Wells Fargo Back In The Scandal Spotlight Once Again
  1. Home
  2. Markets
  3. Other

How to Calculate the Coppock Curve


According to Topline Investment Graphics: "The Market Technicians Association gave Edwin Sedgewick Coppock its annual award for a lifetime of achievement in technical analysis in 1989. He published the formula for the Coppock Curve (or Coppock Guide) in Barron's in 1962. He applied a front-weighted smoothing to an average of two momentums to produce an oscillator that was designed to identify significant bottoms in the stock market. It has proven to be remarkably resistant to whipsaws." At its website, Topline Investment Graphics describes briefly how the Coppock Curve is used.


The Coppock Curve is a monthly indicator which can be applied to various markets. For example, we can apply it to the Dow Jones Industrial Average.

To calculate the Monthly DJIA Coppock Curve all we need is the DJIA time series and a spreadsheet. Let's assume we have calculated the Monthly DJIA Coppock Curve for a few years. Let's assume further that the 100th month in the time series has just ended and now we want to calculate the Coppock Curve value for that month.

Here is the formula in plain English:

Step 1. We calculate the percentage change in the DJIA from Month 86 to Month 100 (from last close to last close).

Step 2. We calculate the percentage change in the DJIA from Month 89 to Month 100 (from last close to last close).

Step 3. We add the two percentages. We then keep this sum (and the 9 sums we previously obtained in the same way for the preceding 9 months) ready for weighting.

Step 4. Consider the weights 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10. Using multiplication, we assign these 10 weights respectively to the sums we attained in Step 3 for each month from Month 91 through Month 100. Month 91 will have a weight of 1. Month 100 will have a weight of 10. We then combine all 10 weighted sums in order to arrive at a weighted total.

Step 5. We multiply by 10 the weighted total obtained in Step 4. This gives us the Monthly DJIA Coppock Curve value for Month 100.


The chart below shows the Monthly DJIA Coppock Curve since 1960. The dashed red line is the zero line. Coppock's own buy signals take place when the curve turns up from any value below the zero line. However, my particular chart is not meant to point out Coppock's own Coppock Curve buy signals. Instead it focuses on those instances where the curve turns up at least 10 points from below -125 (the dashed blue line) which is deep territory. Even deeper, below -250, lies very deep territory (the dashed green line). Thus, this chart shows the 7 deep buy signals and the 1 very deep buy signal since 1960.

Back to homepage

Leave a comment

Leave a comment