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I found this post from last year that I had saved under "Coppock Curve."
It seems I didn't save the header, so I don't know who wrote it, but it
is signed "SectorBets." Here it is:
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
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