Coppock Curve September 2011 Update

Although the Cheetum Market Indicator (CMI) does not use either of these signals to determine market direction, the long term "convincers" of a major market move are the Coppock Curve and the Cheetum Curve.

The Coppock had given a signal last May and continued its downward progression recently although the downtrend signals have been only 50% accurate over the years.

The 80% accurate buy signal (lines upturning below the zero line) should get more attention. The real 'Coppock action' starts below the zero line as the indicating line starts its swing upward.



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The Cheetum Curve is diving towards the lower horizontal blue line but no major downtrend has been confirmed yet. A refresher on using this signal is outlined below.



1. A cross of the red ROC line over the black moving average line from below when both lines are below the lower blue horizontal line triggers a 'buy' signal.

Solid confirmation occurs when both the red and black lines cross through the zero line and then continue above the upper blue line. A reversal of the red line prior to crossing through the 'zone' would trigger a sell signal as noted by the yellow arrow.

2. A cross of the red line below the bottom horizontal blue line triggers a 'sell' signal. The black moving average line is not used as an indication of a sell.

3. If the lines are in the 'zero' zone (between the blue horizontal lines, continue with the previous trend. In other words, if they are in the zone, leave 'em alone.

Related posts here.