Coppock indicator is a powerful indicator to determine the duration of the trend and the change in direction of the trend. It gives excellent signals on larger timeframes - mainly H4 and Daily charts.

The concept behind the Coppock indicator is that in trending markets, the Rate of Change(RoC) gradually rises (or falls), and when the trend ends, it tops out or bottoms out accordingly, thus providing excellent trading opportunities. The Rate of Change is calculated as the difference between the current value and its previous value, divided by the previous value. This is expressed in percentage. Coppock indicator employs Rate of Change using two moving averages, mainly a fast moving average and a slow moving average.
The logic is that when the market changes from sideways to trending, the rate of change of the fast moving average is greater than the rate of change of the slow moving average. This difference determins the direction and strength of the new trend. The greater the difference, the strong the trend.

In the first step we calculate the moving averages of the closing price for R1_PERIOD and R1_MODE, and R2_PERIOD and R2_MODE. The rate of change is calculated for each mode (R1 and R2), between the current moving average and the value R1_PERIOD and R2_PERIOD ago respectively. This value is converted to percentage if USE_PERCENT is set to true, or in points. Finally the sum of the both rates of change is calculated. The Coppock indicator is the moving average over MA_PERIOD of this sum.

Buy: Place Buy when indicator has bottomed out below zero level and is rising for atleast 2 bars.

Sell: Place Sell when the indicator has topped out above zero level and is falling for atleast 2 bars.

Usage

• Download the attachment from vStore or directly from the vStore tab in your terminal by performing a right click on it and selecting Download & Install
• Copy it to your company VertexFX Local VTL Files folder i.e. C:\ProgramData\VertexFX Client Terminals\"Company name"\VTL10\Local VTL Scripts
• Restart your Client Terminal or Right Click on "Local VTL Scripts" Tree Node to find the script.