Introduction to the Coppock Indicator
The Coppock indicator is a custom forex indicator that works like an oscillator recognizing market trends.
That indicator was first introduced by Edwin Sedgwick Coppock in 1962. He published the formula for calculating the Coppock indicator in the Barron’s Magazine.
The formula used in calculating the Coppock does not take into consideration a bearish market direction, but it is still sometimes used by traders.
The indicator is displayed in a separate window placed just below the main trading chart.
It fits all kinds of timeframes and currency pairs.
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences. Let’s take a closer look at these inputs below.
Period – defines the calculation period;
Period ROC 1 – defines the period for calculating the first rate of change (ROC 1);
Period ROC 2 – defines the period for calculating the second rate of change (ROC 2);
Applied price – defines the price used for calculations.
The formula for the Coppock indicator:
The calculations of the Coppock indicator are based on the following formula:
Coppock(Period) = LWMA (ROC(Period ROC 1) + ROC(Period ROC 2))
How to use the Coppock:
When the dark olive green line of the Coppock indicator breaks above the 0.00 level, a trend is considered to be bullish.
When the dark olive green line of the Coppock indicator breaks below the 0.00 level, a trend is considered to be bearish.
How to set up the Coppock indicator in MT5?
Copy and paste the Coppock.mq5 or Coppock.ex5 indicator files into the MQL5 folder of the Metatrader 5 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL5 > Indicators (paste here).
Now go to the left side of your MT5 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The Coppock indicator is well worth adding to your trading collection but remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it.
Coppock Indicator Free Download
To download the Coppock Indicator for Metatrader 5 (MT5) for free just click the button below: