Coppock Indicator
Edwin Sedgwick Coppock developed the Coppock Indicator in 1962 for use on the Dow Jones Industrial Average. Published in Barron’s the same year, it was intended to generate buy signals only. The suggested signal was an upturn in the Coppock indicator from an extreme low.
Other interpretations are for a sell signal when there is a higher peak in stock prices but a lower peak in the Coppock indicator. Commodity markets tend to have the opposite behavior when compared to equity markets, with extreme tops and rounded bottoms. Consequently, the Coppock Indicator is better at identifying tops in commodities than bottoms.
I wanted to see what the Coppock Indicator would say about the price of oil. Now it is a long term indicator, but we can still take a look.
THIS INDICATOR IS FOR DAILY CHARTS ONLY. You can run it on any time frame you want, but it is written for daily charts.
You can download this one from TraderWerks.com