Coppock Curve Indicator Explained Simply and Understandably -- with David Moadel
welcome to looking at the markets with David Modell today we're going to
discuss and explain the copic curve which is one of the lesser known
indicators but it has a lot of similarities with some other indicators
you probably have heard about such as stochastics RSI that kind of thing
because it is a momentum oscillator and it's actually a smooth or smoothed out
momentum oscillator now what does that even mean
well a momentum oscillator basically okay oscillator it means that it bounces
up and down between two numbers okay within a range it doesn't go higher than
the top of the range and it doesn't go lower than the bottom of that range so
it just kind of oscillates or you know fluctuates back and forth up and down
within the range unlike a moving average which you know doesn't just go within a
range a moving average could conceivably go up and up and up forever or down and
down and down forever if a you know if a stock just keeps going down so it's an
oscillator and it is a momentum oscillator meaning that it shows the
general trend or direction of the stock price and it doesn't have to be used on
a stock you can use it on crypto currencies Forex commodities whatever it
is you like okay so this is trading view comm you want to give them credit and
this is what it would look like for day trading I should also mention it's a
smooth out momentum oscillator you notice that it's not jagged right you
don't see a lot of you know jagged ridges there okay because it's smoothed
out so it's really just it kind of averages out the motion there and that
makes it easier to read in some ways alright so this is what it might look
like for day trading and I've got the 1-minute candlestick chart here for home
depot stuck on trading view and the copic the candlesticks are here and the
copic curve is down here and it's I like this because it's really simple
you got zero in the middle there and when the copic curve indicator is below
the zero line the mid line when it's below the zero and then it pops up it
breaks clearly above the zero that's bullish that is remember it's a momentum
indicator and so that tells you that the trend is up okay the general direction
is up and then when it goes when it's above but then it clearly breaks below
the zero line that is supposed to be bearish that means the general trend is
down okay that's pretty simple it doesn't get much simpler than that all
right it's it's not like RSI or stochastics where you have a you know an
oversold line and an overbought line and that kind of thing at least not in the
basic version of this copic curve it's really just is it above or below zero
and what what general direction is the copic curve line going is it generally
going up or is it generally going down so that's one way to use it and I
suppose you could buy the stock or whatever it is if if it's below the zero
line and then clearly clearly breaks above it and then if you wanted to sell
you could wait until it's above and then clearly breaks below the zero line and
then you could sell if you want to you probably would want to use this with
other indicators because it is so simple and it doesn't give you a lot of
information it just kind of tells you the general trend or direction so it
might not be enough for you unless you want something really simple which it is
now kind of like with RSI you can use divergences right if you see the price
action of the candlesticks going upwards but meanwhile the copic curve line is
going downwards you see a diversion divergence here you know this is going
up and this is trending downward generally that could be an indication
you might say to yourself hey wait a minute
those candlesticks are lying to me the copic curve tells the real story of
what's going on underneath the hood as they say I'm not saying that's always
true or that that always works nothing always works in the markets all right so
don't don't think there's a guarantee of anything here you have to make your own
decisions as always so that's what you might you might be able to use it that
way with day trading and then that was trading view this is stock charts calm
which is I think it's really good for swing trading this is the daily
candlestick chart of Home Depot stock and here's the copic curve again on the
standard settings you can see the mid line the zero line right here and pretty
much the same principles apply just on a different time frame with the candles
these are just daily candlesticks instead of 1-minute candlesticks and
again you could use it the same way if the copic curve line is below the zero
line and then it clearly breaks above it that could be bullish you know you would
have bought let's say right here and enjoyed a nice ride up and then you can
get out when the trend reverses and because if it's above the zero line and
then clearly breaks below it then the trend according to the copic curve has
reversed and that you could have avoided a lot of the waterfall here as I like to
call it he could have avoided a lot of bleeding here if you had gotten out when
the copic curve told you to basically right around here all right so that's
the copic curve I explained it simply and I hope understandably I do coach
people in training and investing so if you need some help you can email me
anytime at David Modell at gmail.com if you like this video if you found it
helpful hey why not give it a thumbs up please do that
leave a comment do you like the copic curve were you even aware of it before I
showed it to you do you use it let me know in the comments below and subscribe
to my channel if you haven't done that already and hit that notification bell
do it you'll be glad you did thanks a lot I appreciate it I'll talk
to you again soon
you