Coppock Indicator

A technical analysis indicator named after Edwin Coppock, an economist who was asked by the American Episcopalian Church to identify cheap buying opportunities for long-term investors. It is meant to identify the start of a bull market. Coppock thought setbacks in the stock market were like bereavements and required a period of mourning before normal spirits revived. So he asked the bishops how long it took people to get over the death of a loved one. The answer was between 11 and 14 months. From this Coppock developed a series of calculations – based on 11 and 14 month rates of price change - designed to signal when stock market mourning could be said to be over. The indicator's signal does not emerge at the bottom, but comes as a rally is established. Supporters of the indicator claim that it has signalled rallies to the benefit of investors. A number of other indicators are based on this measure.