Coppock Curve: How to Spot Market Bottoms and Catch Big Reversals

You know how everyone's always trying to catch the bottom of a market crash? It's basically the dream - buying right when everything's about to turn around. Well, there's this old-school indicator called the Coppock Curve that was literally built for that exact thing.

What's wild about it is the backstory. This guy Edwin Coppock created it in the 1960s, and get this - he based it on how long it takes people to get over grief. I know, sounds crazy, but hear me out.

Coppock actually went and asked church officials how long people typically need to recover from losing someone close to them. They said 11 to 14 months. So he thought, "What if markets work the same way?" and built his whole indicator around those timeframes.

What is Coppock Curve Indicator?

Okay, so how does this thing actually work? It's basically a momentum indicator that mixes some rate of change calculations with a weighted moving average. Sounds fancy, but it's really not that complicated.

Here's what it does:

• Looks at how much prices changed over 14 periods
• Adds that to how much they changed over 11 periods
• Then smooths it all out with a 10-period weighted moving average

The math: WMA(10) of [ROC(14) + ROC(11)]

The whole idea is catching when a big downtrend is about to flip. When the curve starts going up from below zero, that's your signal that maybe - just maybe - the worst is over and things are turning around.

What's cool about it:

• It's laser-focused on finding major bottoms, not every little dip
• Uses longer timeframes, so you don't get fooled by daily noise
• Originally made for monthly charts of big market indices
• Gives you fewer signals, but when it does signal, it might actually mean something
• Definitely not for day trading or quick scalps

Most folks stick to monthly or weekly charts with this one. You can use daily charts, but expect more false alarms.

What is Pineify?

Honestly, coding Pine Script from scratch is a pain. You've got to learn all this syntax, debug weird errors, and figure out functions that make no sense. Most of us just want to test our ideas without becoming programmers.

That's where Pineify comes in handy. It's basically like having someone who actually knows Pine Script sitting next to you. You can:

• Build whatever indicator you're thinking of without touching code
• Start with templates that already work and tweak them
• Test your ideas on years of old data to see if they actually work
• Get clean Pine Script code that you can actually read
• Drop it straight into TradingView

Doesn't matter if you're brand new to this or you've been trading forever - it just makes the whole thing less of a headache.

How to add Coppock Curve Indicator to TradingView?

Getting this thing on your charts is pretty easy:

1. Head over to pineify.app
2. Search for "Coppock Curve"
3. Click on it and mess with the settings if you want (colors, periods, whatever)
4. Hit "Generate Pine Script"
5. Copy the code
6. Open TradingView, go to the Pine Editor
7. Paste it in, save it
8. Add it to your chart

Once it's up, you'll see the curve in its own little window below your price chart. It bounces around above and below zero - that's where you want to pay attention.

How to use Coppock Curve Indicator?

Alright, now that it's on your chart, here's how to actually use it:

The zero line is your best friend:

• When the curve starts going up from below zero, that's your classic buy signal
• The thinking is that the big scary bear market is finally ending
• You're waiting for that moment when it stops going down and starts climbing back up

Pay attention to the direction:

• Curve going up = momentum building
• Curve going down = momentum fading or things getting worse
• Flat curve = market's just hanging out, not doing much

This is a patience game:

• Forget about day trading with this - we're talking months and years here
• Works way better on weekly and monthly charts
• This is for people who can wait, not people looking for quick flips

Don't use it alone:

• Look at support and resistance, trend lines, volume - the whole picture
• Works better when markets are actually trending somewhere
• Think about what's happening in the world too

Speaking of combining indicators, you might want to check out how Bollinger Bands and RSI work together - it's a solid combo that actually makes sense, unlike some of the random stuff people throw on their charts.

Don't get carried away:

• This won't catch every dip (and you don't want it to)
• Still use stop losses and position sizing
• It's looking for the big moves, not every little wiggle

Basically, this thing was built to catch those rare moments when everything really turns around, not to give you signals every week.

Best Coppock Curve Indicator Settings

The original settings are pretty solid, and honestly, there's a good reason people still use them:

The classics:

• WMA Length: 10 periods
• Long ROC Length: 14 periods
• Short ROC Length: 11 periods

Remember, these numbers come from that whole grief cycle thing - they're not just random. Lots of people still use these exact settings because they've worked for like 50+ years.

Different timeframes:

• Monthly charts: Just stick with 10, 14, 11
• Weekly charts: Maybe try 8, 12, 9 if you want it a bit more responsive
• Daily charts: You could go with 6, 10, 8, but you'll get more noise

If you're curious about other momentum indicators that work well across different timeframes, the Awesome Oscillator is worth a look. It's another tool that helps spot momentum shifts, though it's more for shorter-term moves than the Coppock's big-picture approach.

If you want to tweak it:

• Want more signals? Try 5, 10, 8
• Want fewer but potentially better signals? Try 15, 20, 15
• You can mess with the smoothing too

My advice:

• Start with the original settings first
• Getting too many false signals? Make the periods longer
• Missing moves? Make them a bit shorter
• Test whatever changes you make on old data

The whole point is finding that sweet spot where you catch the real moves without getting fooled by fake ones. The original settings are honestly a pretty good place to start.

How to backtest Coppock Curve Indicator?

This is where you find out if this thing actually works for you or if it's just another shiny indicator:

Testing it out:

• Build your strategy in Pineify
• Set your entry rule (like "buy when curve goes up from below zero")
• Figure out when you'll exit (take profit, stop loss, whatever)
• Decide how much you'll risk per trade
• Run it on years of old data

What to look at:

• Entry: Curve turning up from below zero
• Exit: Maybe when it turns back down, or use your own exit plan
• Try different timeframes: monthly, weekly, daily
• Test it in different market conditions - bull markets, bear markets, sideways chop
• Try different stuff: stocks, indices, forex, crypto

Numbers that matter:

• Win rate: How often are you right?
• Average win vs loss: Are your winners bigger than your losers?
• Max drawdown: How bad can it get?
• Total return vs just buying and holding

Don't mess this up:

• Use at least 5-10 years of data
• Include trading costs (they add up)
• Test through different market cycles
• Don't over-tweak it - if it only works with super specific settings, it's probably not real

With Pineify, you can set up the whole thing - entries, exits, stop losses, position sizing, all of it. Then you can see if it would have actually made you money or just given you a bunch of stress.

New to backtesting? Our guide on building a Pine Script scalping strategy walks through the whole process step by step. Even though scalping is way different from what the Coppock does, the backtesting principles are exactly the same.

Wrapping It Up

Look, the Coppock Curve isn't the flashiest indicator out there. It's not going to beep at you every day with new signals. But when it does say something, it might actually be worth paying attention to.

What I like about it is that it's focused. It was built to do one thing - catch major market bottoms - and it's been doing that job for over 50 years. If you're the type who thinks in months and years instead of minutes and hours, this could be useful.

Just don't expect it to be everything. It's not for day trading, it won't catch every move, and it works way better when you're looking at other stuff too. But for what it was made to do - spotting those big, rare moments when everything changes direction - it's pretty solid.

Whether you stick with the original settings or mess around with them, the important thing is understanding what it's actually telling you. And these days, with tools like Pineify, you can test different versions pretty easily to see what works for your situation.

If you're just getting started with Pine Script in general, you might find our complete guide to Bollinger Bands helpful. It's one of those foundational indicators that pretty much everyone should understand before diving into more complex stuff like the Coppock Curve.