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Hi,
My understanding of the Coppock Indicator is that is is calculated as
follows:
1. Calculate the % change in value from 14 months ago
2. Calculate the % change in value from 11 months ago
3. Add 1 + 2
4. The Coppock indicator is the 10-month weighted average of 3.
This is from Temby, Technical Analysis For Trading Index Warrants.
The formulae presented do not appear to calculate it in the same way.
Please correct me if I'm wrong.
Thanks,
Andrew J. Kornberg
============================================
Coppock Curve
NAME: Coppock Curve - E.S.C. Coppock
{As published in TAM-mag Apr97 p.15
Article by J van Gemeren}
Formula:
Mov(Mov(C,22,S)/Mov(Ref(C,-250),22,S),150,E)-1
=============================================
CoppockMomentum - Edwin Coppock
Formula:
{As published in TAM-mag Feb97 issue p10
Mid-Term Indicator with 0 crosses as buy/sell
signals and divergence as "correction indicator"
see also Coppock Trade System-indicator}
((Mo(14)*1)+
(Mo(13)*2)+
(Mo(12)*3)+
(Mo(11)*4)+
(Mo(10)*5)+
(Mo(9)*6)+
(Mo(8)*7)+
(Mo(7)*8)+
(Mo(6)*9)+
(Mo(5)*10)+
(Mo(4)*11)+
(Mo(3)*12)+
(Mo(2)*13)+
(Mo(1)*14))/14
NAME:
CoppockMomentum Trade System - Edwin Coppock
Formula:
{As published in TAM-mag Feb97 issue p10
Mid-Term Indicator with 0 crosses as buy/sell
signals and divergence as "correction indicator"
see also Coppock-indicator}
(If(
fml( "CoppockMomentum - Edwin Coppock" )>
Ref(fml( "CoppockMomentum - Edwin Coppock" ),-1)AND
Ref(fml( "CoppockMomentum - Edwin Coppock" ),-1)>
Ref(fml( "CoppockMomentum - Edwin Coppock" ),-2),+1,0))
AND
(If(
fml( "CoppockMomentum - Edwin Coppock" )<
Ref(fml( "CoppockMomentum - Edwin Coppock" ),-1)AND
Ref(fml( "CoppockMomentum - Edwin Coppock" ),-1)<
Ref(fml( "CoppockMomentum - Edwin Coppock" ),-2),-1,0))
=============================================
-----Original Message-----
From: Greatelto <Greatelto@xxxxxxx>
To: metastock-list@xxxxxxxxxxxxx <metastock-list@xxxxxxxxxxxxx>
Date: Thursday, December 11, 1997 10:08 PM
Subject: Momentum Index
>Has anybody heard of or know where to find info on the Coppock Curve? I
>understand it is a momentum index based on a combination of two rate of
change
>measures and has a very good record of identifying bottoms and new advance
>phases when the index itself moves from an oversold condition. It recently
>did just that, suggesting strength into the year end and early 1998.
>
>If anyone can help, please advise. Thanks....
>
>Jerry
>
Well, here is the Coppock Curve formula for MetaStock...sorry it is so long,
but that's
life sometimes. I don't display a scale and I also set a horizontal at
"zero" just for better
visualization. If you want to set a scale that makes sense, you should
probably multiply
the whole formula by maybe 10000 or 100000 to have a set of numbers that
make
sense.
(ROC( CLOSE,14 ,percent )*10 + ROC(CLOSE,11,percent)*10 +
ROC(Ref(CLOSE,-1),14,percent)*9+ROC(Ref(CLOSE,-1),11,percent)*9+
ROC(Ref(CLOSE,-2),14,percent)*8+ROC(Ref(CLOSE,-2),11,percent)*8+
ROC(Ref(CLOSE,-3),14,percent)*7+ROC(Ref(CLOSE,-3),11,percent)*7+
ROC(Ref(CLOSE,-4),14,percent)*6+ROC(Ref(CLOSE,-4),11,percent)*6+
ROC(Ref(CLOSE,-5),14,percent)*5+ROC(Ref(CLOSE,-5),11,percent)*5+
ROC(Ref(CLOSE,-6),14,percent)*4+ROC(Ref(CLOSE,-6),11,percent)*4+
ROC(Ref(CLOSE,-7),14,percent)*3+ROC(Ref(CLOSE,-7),11,percent)*3 +
ROC(Ref(CLOSE,-8),14,percent)*2+ROC(Ref(CLOSE,-8),11,percent)*2+
ROC(Ref(CLOSE,-9),14,percent)+ROC(Ref(CLOSE,-9),11,percent))/2
The formula, however, is only of academic interest unless it is used with
either
Coppock's original intent (I don't like it since it usually gets out far too
early in trending
markets/stocks) or with a slight modification that I developed over the last
couple of
years and will be publishing in the Market Technicians Association Journal
sometime
over the next few months. Without getting into too much verbiage, you can
set up a
system test that uses my modifications as follows:
Let's assume that you have called the above formula "Coppock Curve."
Signal Formulas
Enter Long:
Fml("Coppock Curve") > Ref(Fml("Coppock Curve"), -1)
AND
((Close > Ref(Open,-1) AND Ref(Black(),-1))
OR
(Close > Ref(Close,-1) AND Ref(White(),-1)))
Close Long:
Fml("Coppock Curve") < Ref(Fml("Coppock Curve"),-1)
AND
((Close < Ref(Open,-1) AND Ref(White(),-1))
OR
(Close < Ref(Close,-1) AND Ref(Black(),-1)))
Enter Short:
Fml("Coppock Curve") < Ref(Fml("Coppock Curve"),-1)
AND
((Close < Ref(Close,-1) AND Ref(Black(),-1))
OR
(Close < Ref(Open,-1) AND Ref(White(),-1)))
Close Short:
Fml("Coppock Curve") > Ref(Fml("Coppock Curve"),-1)
AND
((Close > Ref(Close,-1) AND Ref(White(),-1))
OR
(Close > Ref(Open,-1) AND Ref(Black(),-1)))
This approach works well with monthly, weekly, daily, hourly etc charts.
Visually, I like
to use candlestick charts since it is easier to "see" the trading signals as
they appear
on the chart. Try this out on several of your favorite stocks and you will
be pretty
amazed at how well it works, particularly versus a buy-and-hope strategy.
Good luck.
SectorBets
=============================================
Coppock Curve
rev. 01/06/97
The Coppock Curve was developed by Edwin Sedgwick Coppock in 1962. It was
featured in the November 94 issue of Technical Analysis of Stocks &
Commodities, in the article "The Coppock Curve", written by Elliot
Middleton.:
Taken from Stocks & Commodities, V. 12:11 (459-462): The Coppock Curve by
Elliott Middleton
"We are creatures of habit. We judge the world relative to what we have
experienced. If we're shopping for a mortgage and rates have been in the
teens (as they were in the early 1980s) and then drop to 10%, we are elated.
If, however, they've been at 8% and then rise to 10%, we are disappointed.
It all depends on your perspective.
The principle of adaptation-level applies to how we judge our income levels,
stock prices and virtually every other variable in our lives.
Psychologically, relativity prevails..
SIMPLEST FORMS
The moving average is the simplest form of adaptation-level. Moving average
crossover rules accurately signal the onset of periods of returns outside
the norm, whether positive or negative. This makes moving average crossovers
useful to traders who want to get a boost on entering or exiting stocks or
funds.
The oscillator is also based on adaptation-level, although in a slightly
different way. Oscillators generally begin by calculating a percentage
change of current price from some previous price, where the previous price
is the adaptation-level or reference point. The mind is attuned to
percentage changes because they represent returns. If you bought Microsoft
Corp. stock (MSFT) at $50 and it goes to $80, you make 60% before dividends.
If you bought Berkshire Hathaway (BRK) at $4,000 and it rises to $4,030, the
same dollar gain, you make 0.75% before dividends. It's the percentage
change that counts. Relativity again.
Coppock reasoned that the market's emotional state could be determined by
adding up the percentage changes over the recent past to get a sense of the
market's momentum (and oscillators are generally momentum indicators ). So
if we compare prices relative to a year ago - which happens to be the most
common interval - and we see that this month the market is up 15% over a
year ago, last month it was up 12.5% over a year ago, and 10%, 7.5% and 5%,
respectively, the months before that, then we may judge that the market is
gaining momentum and, like a trader watching for the upward crossover of the
moving average, we may jump into the market."
The MetaStock™ formula for the Coppock Curve is:
(MOV(ROC(MOV(C,22,S),250,%),150,E))/100
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