The Coppock Curve is a long-term price momentum indicator meaning it is used to determine overbought and oversold areas although it is most commonly used to determine oversold areas. It is calculated as a 10-month weighted moving average of the sum of the 14-month rate of change and the 11-month rate of change for the index; it is also known as the “Coppock Guide.” The Coppock formula was introduced in Barron’s in 1962 by Edwin Sedgwick Coppock.
Watch the above video for a tutorial on how to trade the Chande Kroll Stop. The Chande Kroll Stop is used to set up stop loss trades and for buy and sell orders. The Chande Kroll Stop was made by the same person who made the Chande Momentum Oscillator. The Chande Kroll Stop is created by taking the true averages over a period of time to create stop losses at points of volatility where the trend would most likely switch direction. It also helps show trend confirmation.