Trading cryptocurrency market using coppock curve indicator

0 11

Written by

trader,blockchain technologist and contentpreneur.Also founder and ceo at teacher forex sc... [more]

4 years ago

Coppock curve is a momentum oscillator indicator.

As a momentum oscillator indicator, Coppock curve indicator was created by Edwin Sedge Coppock to help traders mainly identify buy entry in the market. It can also be used to identify sell entry in the market though not highly recommended. As a momentum oscillator indicator, coppock curve has an oscillation at point 0.0000.With this oscillation, when the coppock curve falls below 0.000 that will be an indication of an oversold condition while when it rises above 0.000 that will be an indication of an overbought condition. Coppock curve normally has 3 periods, that is 10 period, 14 period and 11 period.

Using the 3 period above, the values of coppock curve is being derived using the formula as below;

Coppock curve =( WMA of 10period) of (14 period ROC+11period ROC)

Where as;

WMA is Weight Moving Average;

ROC is Rate Of Change indicator;

Therefore,the oversold and overbought market condition based on coppock curve can further be explained as follows;

1. coppock curve cryptocurrency oversold

Since coppock curve has an oscillation at point 0,it therefore follows that when the coppock curve falls below 0.000 that will be an indication that the market has become an oversold market thus the cryptocurrency trader should purchase a given amount of cryptocurrency with their USDT balance. The cryptocurrency trader can either place a market buy order which will be processed immediately or they can place a limit buy order which will be processed when the market reaches their limit buy order. This is indicated as from below;

The above is a TRX market . From the chart, two points are being indicated. There is point A and point B. Point A represents the coppock curve while point B represents the oversold point. At point B, the coppock curve has fallen below 0.000 thus an indication of an oversold market at that point. This signals the cryptocurrency trader to purchase a given amount of TRX with their USDT balance. The cryptocurrency trader can either choose to place a market buy order which will be processed instantly or they can place a limit buy order which will be processed when the market reaches their limit buy order. When their order is being processed, their account will start increasing in value if the TRX market is rising up.

2. coppock curve cryptocurrency overbought

Since coppock curve has an oscillation at point 0,it therefore follows that when the coppock curve rises above 0.000 that will be an indication that the market has become an overbought market thus the cryptocurrency trader should sell a given amount of cryptocurrency which he had previously purchased and is currently holding . The cryptocurrency trader can either place a market sell order which will instantly be executed or they can place a limit sell order which will be processed when the market reaches their limit sell order. The overbought market is indicated as from the candle sticks chart below;

The above is a TRX market . From the chart, two points are being indicated. There is point A and point B. Point A represents the coppock curve while point B represents the overbought point. At point B, the coppock curve has risen above 0.000 thus an indication of an overbought condition over there. This signals the cryptocurrency trader to sell a given amount of TRX which he had previously purchased and is currently holding to prevent their account from declining in value. The trader can either place a market sell order which will be processed instantly or they can place a limit sell order which will be processed when the market reaches their limit sell order. When their order is being processed, their account will increased in value in terms of USDT.