Importance of " Coppock Curve Indicator" in trading..

INTRODUCTION:

Assalamu Alaikum dear Forex members kesy hn ap sab log umeed ha k ap sab kheriat se hon gy. R forex trading me acha profit gain kr rhy hon gy. Dear members forex trading man indicator ko apny study kia Hoga r isko understand b kia Hoga Jo k most importance rkhta ha forex trading me q k iski base per bum trading krty hn ye humy indication krta ha trading k related. To main apky sth ek important indicator discuss kru ga Jo k Coppock curve indicator ha...

DEFINED THE COPPOCK CURVE INDICATOR:

Dear members forex market man coppock curve indicator basically long term me buy k signals generate krta ha. Jo k trending securities me work krta ha. Coppock curve indicator trend following kehlata ha but iski basic assumptions r uses k base per ye srf buy k signal generate krta ha.
But ye srf long term trading k ly suitable ha. Specially esi securities me jo k ek dafa trend park Len to phr few years k ly ek hi direction me chlti rehti hn isko coppock curve indicator kehty hn..



INTERPRETATION OF COPPOCK CURVE INDICATOR:

Dear members forex market man coppock curve indicator JB zero se below ho r iski slope positive ho ri ho to ye buy ka signal generate kr that hota ha. Coppock curve indicator must of time positive r zero k above rehta ha. Is ly ye indicator reversal ya selling ka signal generate ni krta.. ye just buy ka signal generate krta ha..



USES OF COPPOCK CURVE INDICATOR:

Dear members forex trading me Coppock curve indicator ka use currencies r commodities me bht km ha. JB k iska use ziada tar stock r indices me hota ha. Q k stocks r equities contract ya exptension ki wja se falling bht jald krti hn. Jis ki waja se ye indicator inko buy ka signal generate krta ha. JB k currencies r commodities me ESA ni hota. Barhall ek dfa crude oil me ek dfa hua k wo bottom pr as gai. But securities r stock mostly bottom per as jati hn. Hum isko srf esi securities pe implement kr skty hn. Jo k bottom per aye r usky bad hum isko buy ka signal ly skty hn...



TRADING WITH COPPOCK CURVE INDICATOR:

Dear members forex market me Coppock curve indicator me zero line trader use krty hn Jo k buy ka signal generate krta ha. JB prices zero se above move krti hn. Same is trah wo sell ki trade ko active krty hn JB wo zero se below krti ha. Investor sell ka signals use krty hn long trade ko close krny k ly. R phr wo long trade ko open krty hn JB wo zero se above move krna start kr deti ha. Is indicator me other technical support ko b use krna chaheye...

Re: Importance of " Coppock Curve Indicator" in trading..

What Does the Coppock Curve Tell You?

The Coppock Curve was originally implemented as a long-term buy and sell indicator for major indices such as the S&P 500 and the Wilshire 5000. Often, it is used with long-term time series such as a candlestick chart, but where each candle contains a month's worth of price information. When the indicator is above zero it indicates a hold. When the indicator drops below zero it indicates a sell, and when the indicator moves above zero it signals a buy.

Beyond the signals above, the curve will often appear uncorrelated to price. This is due to the long-term lagging nature of the indicator.

Example of How to Use the Coppock Curve

Apply the Coppock Curve to a monthly price chart of a stock index or stock index exchange traded fund (ETF). The general strategy is to buy when the Curve rises above the zero line and consider selling when the Curve falls below zero. For investors who already own the ETF, when the Coppock curve is above zero the indicator is signaling to hold onto the investment.

The SPR S&P 500 ETF (SPY) shows all the buy and sell signals the Coppock Curve has generated since mid-1995.



Coppock Curve Applied to SPDR S&P 500 ETF. TradingViewThe indicator kept investors out of a portion of the 2001 and 2008 stock market declines. However, in 2016, the indicator provided a sell signal near the market bottom and then gave a buy signal a short time after at a higher price.

The Difference Between the Coppock Curve and Rate of Relative Strength Index (RSI)

The relative strength index looks at how the current price compares to prior prices, though it is calculated differently than the rate of change (ROC) indicator used in the Coppock Curve calculation. Therefore, these indicators will provide different trade signals and information.

Limitations of the Coppock Curve

The major drawback of the Coppock Curve is the event of a false signal. False signals occur when the curve quickly moves above and below the zero line. This may cause traders to make purchases, but then the indicator says to sell them again, or vice versa.