CopPock MT4 Indicator – a reliable momentum indicator

The CopPock MT4 indicator is a technical analysis indicator based on the Coppock curve developed by Edward Coppock in 1962 and was initially developed to be used for stock trading, but its applicability can be extended to any other asset classes including the currency market. This indicator is suited more for long-term trading, but since the markets are fractal in nature, it can be applied to any other time frame as well. This is a momentum indicator and the goal of this technical indicator is to identify long-term buying and selling opportunities.

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The CopPock MT4 indicator it looks almost similar to the MACD indicator except the fact that it doesn’t have the Signal line. The Coppock curve is a 10 period weighted moving average of the 14 periods ROC (the rate of change) plus the 11 periods ROC. The rate of change (ROC) shows momentum.

The difference between the classical Coppock curve and the CopPock MT4 indicator is that the CopPock MT4 indicator displays a histogram instead of a curve, which can give you a better visual insight into how strong the current trend is.

The CopPock MT4 Indicator Settings

The preferred settings for the CopPock MT4 indicator are the default settings. The Settings can be adjusted to suit one’s own trading style. The input parameters of the CopPock MT4 indicator are as follows:

• ROC1 Period = 14;
• ROC2 Period = 11;
• MAPeriod = 10;

We have four moving averages types from where we can choose. If you select 0 is the Simple Moving Average (SMA); 1 is the Exponential Moving Average (EMA); 2 is the Smoothed Moving Average (SMMA); and 3 is the Linear Weighted Moving Average (LWMA). Because the Coppock curve is constructed on the weighted moving average, we prefer to work with MAType=3;

CopPock MT4 Indicator Strategy and Trading Rules

The CopPock MT4 strategy is a swing trading strategy applied on the Daily chart. Originally the Coppock curve was designed to work on the Monthly chart and that’s one of the reasons why we prefer to stay on higher time frame even though the same principles can be applied on the intraday time frames, but we noticed that on higher TF it yields a better performance and tend to give less false signals.

Simply put it when the CopPock histogram is above the zero line this indicates a bullish trend and we would like to buy and inversely when the CopPock histogram is below the zero line we would like to sell. Without further ado, these are the buy/sell rules of the CopPock MT4 strategy:

• Buy Signal: Wait for the CopPock histogram to cross above the zero line and only buy after we have at least 2 bars above the zero line. Use a fixed protective stop loss order of 150 pips and take profit once the CopPock histogram crosses below the zero line.
• Sell Signal: Wait for the CopPock histogram to cross below the zero line and only sell after we have at least 2 bars below the zero line. Use a fixed protective stop loss order of 150 pips and take profit once the CopPock histogram crosses above the zero line.

After the markets move in our favor the same distance as our SL, it’s recommended to move your SL at BE and preferable you can take some partial profits as well.

In the above chart, we have the GBP/USD daily chart and where we highlighted a buying and selling opportunities. What we can observe from these examples is that it’s quite important to take partial profits once the market moved the same distance as our SL and move our SL at BE this way we can ensure we build up our account in the long run and secondly we make sure we have a high win rate by following this simple step.

Recommended Time Frames for the CopPock MT4 Indicator

Technically speaking, you can use this MT4 indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.

CopPock MT4 Indicator Download

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Leave us a comment below to let us know your thoughts on this indicator. If you like this indicator, you might like see other indicators that we have carefully selected that will help you in your trading journey.

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