The Coppock Indicator for MetaTrader is a powerful tool that many traders swear by. Developed by Edward Coppock back in 1962, this indicator provides insights into long-term buy and sell opportunities—though it's primarily used for identifying buying signals. It works by calculating a weighted moving average (with a period of 10) based on two rates of change (with periods of 14 and 11). This classic version is now easily accessible in MetaTrader 4 and 5, allowing you to tweak its parameters for your trading strategy.
Input Parameters
- ROC1Period (default = 14) — This sets the period for the first Rate of Change in the calculation.
- ROC2Period (default = 11) — This defines the period for the second Rate of Change.
- MAPeriod (default = 10) — This determines the period of the Moving Average applied to the sum.
- MAType (MT4 only) (default = 3 (WMA)) — This specifies the method for the Moving Average. It's best to stick with the default setting.
The key to effectively using the Coppock indicator is to watch for the curve's movements. The strategy is straightforward: buy when the curve begins to rise from a trough below zero and sell when it starts to fall from a peak above zero. Keep in mind that minor tops and troughs are often ignored. This indicator is particularly useful for spotting trends early on, but it won't always get you in at the absolute highs and lows.
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