About the Coppock Indicator
The Coppock indicator for MT4 is a momentum oscillator based on the Rate-of-Change (ROC) concept.
It oscillates above and below a zero line, helping traders identify trend direction and trading ranges.
A bullish signal occurs when the Coppock oscillator crosses above zero from below, indicating upward momentum.
A bearish signal occurs when it crosses below zero from above, indicating downward momentum.
For optimal results, the Coppock indicator should be used alongside a longer-term trend-following tool, such as a moving average, Bollinger Bands, or ADMI.
By trading in the direction of the overall trend, traders can focus on high-probability setups and reduce counter-trend exposure.
It is suitable for scalping, day trading, swing trading, and all MT4-compatible instruments.
Free Download
Download the “coppock.mq4” MT4 indicator
Key Features
- A momentum oscillator that highlights bullish and bearish conditions.
- Zero-line crossovers provide clear buy and sell signals.
- Helps identify trend direction and trading ranges.
- Works well with trend-following indicators for confirmation.
- Applicable across all currency pairs and timeframes.
Indicator Chart
Below, the Coppock indicator illustrates momentum on a live price view, oscillating above and below the zero line.
Positive readings indicate bullish momentum, while negative readings highlight bearish momentum.
The chart shows how the oscillator’s crossover above zero can signal a potential long trade in alignment with the overall trend, and a crossover below zero can signal a potential short trade.
Guide to Trade with the Coppock Indicator
Buy Rules
- Ensure the overall trend is upward using a trend filter such as a moving average.
- Wait for the Coppock oscillator to cross above the zero line from below.
- Enter a buy trade at the close of the confirming candle.
- Ignore buy signals that occur against the main trend or near strong resistance.
Sell Rules
- Ensure the overall trend is downward using a trend filter such as a moving average.
- Wait for the Coppock oscillator to cross below the zero line from above.
- Enter a sell trade at the close of the confirming candle.
- Ignore sell signals that occur against the main trend or near strong support.
Stop Loss
- For buy trades, place the stop loss below the most recent swing low or consolidation zone.
- For sell trades, place the stop loss above the most recent swing high or consolidation zone.
- Exit early if the oscillator reverses sharply against your position.
Take Profit
- Close buy trades if the Coppock oscillator falls below the zero line.
- Close sell trades if the Coppock oscillator rises above the zero line.
- Optionally, secure profits earlier if price approaches strong support or resistance.
Coppock + Zero Lag MA MT4 Day Trading Strategy
This MT4 strategy merges the trend-filter power of the Zero Lag Moving Average Indicator with momentum confirmation from the Coppock MT4 Indicator.
The Zero Lag MA shows the general trend.
If price is above the moving average the market is bullish. If price is below the moving average the market is bearish.
The Coppock indicator adds a momentum filter: when its histogram rises above zero it signals buying momentum. When it falls below zero it signals selling momentum.
By combining trend direction and momentum confirmation we increase the chance of clean day trades.
This setup works well for day traders. Use medium time frames like M15 or H1. It fits traders who prefer structured entries and exits.
The strategy applies best on major and liquid pairs such as EURUSD, AUDUSD, USDJPY, and GBPUSD.
Buy Entry Rules
- Price must be above the Zero Lag MA indicating a bullish trend.
- The Coppock histogram must cross from below to above zero or already be above zero indicating upward momentum.
- Enter a buy order at the close of the confirming candle.
- Set stop loss a few pips below the recent swing low or a little below the Zero Lag MA line (for example, 20 to 30 pips depending on pair volatility).
- Set take profit to a reasonable target such as 40 to 60 pips or exit before end-of-session.
- You can also trail stop with the Zero Lag MA if price stays strong.
Sell Entry Rules
- Price must be below the Zero Lag MA showing a bearish trend.
- The Coppock histogram must fall from above to below zero or already be below zero indicating downward momentum.
- Enter a sell trade at the close of the confirming candle.
- Set stop loss a few pips above the recent swing high or just above the Zero Lag MA (for example 20 to 30 pips depending on volatility).
- Set take profit 40 to 60 pips or exit before session end.
- A trailing stop along the Zero Lag MA is allowed if price trends strongly.
Advantages
- The Zero Lag MA filters out trades against the main trend. This reduces whipsaws.
- The Coppock momentum does not repaint and helps confirm strength of move. This reduces weak entries.
- The use of M15 or H1 gives enough time for trades to develop without being too slow or too noisy.
- Clear rules make the strategy easy to follow and consistent over time.
- Flexible exits: fixed profit targets or trailing methods work depending on the session and volatility.
Drawbacks
- If volatility is low price may not reach profit targets before reversal, increasing the risk of small losses or break-even trades.
- Trailing exits require discipline and can be stressful during fast moves.
- Overnight gaps or sudden news events may invalidate the trend and hit stops before momentum builds.
Example Case Study 1 – EUR/USD (H1 chart)
On a Monday morning, EUR/USD was trading above the Zero Lag MA showing a bullish trend.
The Coppock histogram rose above zero at 1.1024.
A buy trade was entered on candle close.
Stop loss placed at 1.0988 (36 pips). Take profit set at 1.1084 (60 pips).
Over the next two hours price climbed steadily.
The trade closed at 1.1084 for +60 pips.
The trend stayed bullish and Coppock remained above zero while price stayed above the Zero Lag MA.
The combination produced a strong clean move within the session.
Example Case Study 2 – AUD/USD (M15 chart)
During the Asian-London overlap, AUD/USD drifted below the Zero Lag MA.
The Coppock histogram dropped from above to below zero at 0.6732.
A sell order was placed at candle close.
Stop loss was set at 0.6774 (42 pips). Take profit targeted 0.6684 (48 pips).
Over the next 45 minutes price dropped and reached 0.6684.
The trade closed for +48 pips.
During the move, price stayed under the Zero Lag MA and momentum remained bearish according to Coppock.
This scalp captured a good intraday move despite moderate volatility.
Strategy Tips
- Use this strategy during active trading sessions for the best results. Avoid late-week or low-volume periods when moves are weak.
- Consider trading only major currency pairs for better liquidity and lower spread costs.
- If volatility is high, you may tighten stop loss and increase take profit or use trailing stop following the Zero Lag MA line.
- Keep a trading journal. Record each trade’s entry conditions. After a few weeks, review what worked well and what did not.
Download Now
Download the “coppock.mq4” Metatrader 4 indicator
FAQ
Is a trend filter required?
For optimal results, yes. Using a trend-following tool like a moving average, Bollinger Bands, or ADMI ensures trades align with the dominant market direction.
Which markets is it suitable for?
The Coppock indicator works well on forex pairs, commodities, indices, and other instruments available on MT4.
It is especially effective when paired with trend confirmation for higher accuracy.
Summary
The Coppock indicator is a powerful momentum oscillator that highlights bullish and bearish trends using zero-line crossovers.
It simplifies trend-following by providing clear signals aligned with market momentum.
When used with a longer-term trend filter, the indicator helps traders identify high-probability trade setups, manage risk, and avoid counter-trend entries.
Its flexibility across timeframes and instruments makes it suitable for scalping, day trading, and swing trading strategies.
