Chart Item |
Description |
Coppock Indicator |
The Coppock indicator is a technical analysis indicator created by Edwin Coppock. The indicator is designed for use on a monthly
time scale. It's the sum of a 14-month rate of change and 11-month
rate of change, smoothed by a 10-period weighted moving average.
Coppock
= WMA [10] of (ROC [14] + ROC [11]) Coppock was an economist and he had been asked by the Episcopal Church to
identify buying opportunities for long-term investors. He thought market
downturns were like bereavements and required a period of mourning. He asked
the church bishops how long that normally took for people, their answer was
11 to 14 months and so he used those periods in his calculation. A buy signal is generated when the indicator is
below zero and turns upwards from a trough. The indicator is trend-following,
and based on averages, so by its nature it doesn't pick a market bottom, but
rather shows when a rally has become established. A sell signal is generated when the indicator is
above zero and turns downwards from a peak. The indicator was not originally designed to
indicate SELLs, which should be treated with caution. Unofficial BUY signals (BUY*) are generated when
there is an upturn and the indicator is above zero. Unofficial SELL signals (SELL*) are generated when
the is a downturn and the indicator is below zero. Coppock designed the indicator for the S&P 500 index and it's been applied
to similar stock indexes like the Dow Jones Industrial Average. It's not
regarded as well-suited to commodity markets, since bottoms there are more
rounded than the spike lows found in stocks. Although designed for monthly use, a daily
calculation over the same period can be made, converting the periods to 294
day and 231 day rate of changes, and a 210 day weighted moving average. This
is the calculation used in Sharelockholmes. |
Coppock BUY |
Official Buy
signal. The Coppock indicator is below zero and
turns upwards. |
Coppock BUY* |
Unofficial Buy
signal. The Coppock indicator is above zero and
turns upwards. |
Coppock SELL |
Official Sell
signal. The Coppock indicator is above zero and
turns downwards. |
Coppock SELL* |
Unofficial Sell
signal. The Coppock indicator is below zero and
turns upwards. |
Death Cross |
A crossover
involving a security's short-term moving average (such as 50-day moving
average) breaking below its long-term moving average (such as 200-day moving
average. The long term moving average should be flat or falling. As long-term
indicators carry more weight, the Golden Cross indicates a bear market on the
horizon and is reinforced by high trading volumes. Additionally, the long-term
moving average becomes the new resistance level in the rising market. The Death Cross
used in Sharelockholmes is based on the 50 day and
200 day weighted moving average.. |
Golden Cross |
A crossover
involving a security's short-term moving average (such as 50-day moving average)
breaking above its long-term moving average (such as 200-day moving average.
The long term moving average should be flat or rising. As long-term
indicators carry more weight, the Golden Cross indicates a bull market on the
horizon and is reinforced by high trading volumes. Additionally, the
long-term moving average becomes the new support level in the rising market. The Golden
Cross used in Sharelockholmes is based on the 50
day and 200 day weighted moving average. |
200 Day MA Bottom |
Shows a
reversal in the 200 day moving average, which was declining, but is now
rising. |
200 Day MA Top |
Shows a
reversal in the 200 day moving average, which was rising, but is now declining. |