Indicators

Coppock Curve Indicator Explained

How the Coppock Curve was designed to call major market bottoms with long-horizon momentum, and how to automate it in Setup.Cash.

By Setup.Cash TeamLast updated 2026-07-032 min read228 words

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The Coppock Curve has one of the strangest origin stories in finance: Edwin Coppock designed it in 1962 for a church group asking when markets offered safe long-term buying. It sums two long rate-of-change readings (14 and 11 months, classically) under a weighted average — and its upturns from below zero have marked major bottoms for six decades.

How It Works

  • ROC(14) + ROC(11), smoothed by a 10-period weighted moving average.
  • Designed for monthly charts; works proportionally on weekly and daily horizons.
  • The signal is the turn: the curve bottoming and rising while still below zero.

How to Trade It

The canonical rule is patient: buy when the Coppock Curve turns up from negative territory, and stay with the position while it rises. Bots can encode the turn as 'value crosses above its own 2-bar-ago value while below zero' — a rare but historically potent condition.

Building It in Setup.Cash

Add Coppock Curve in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. See KST for the multi-horizon generalization. For the full category overview, see the advanced trend library guide.

Trend tools reward patience: pick one, pair it with a volatility or regime filter, and backtest before trading it live.

Not financial advice. Trading involves risk. Use backtesting and paper trading before risking real capital.

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Use Setup.Cash to create, backtest, and paper trade rule-based strategies without relying on guesswork. Not financial advice. Trading involves risk.