The oscillator presented herein is based on “rate of change” (RoC). The indicator currently shows a peak in momentum, as SPY fails to put in a higher high.
The Coppock Curve is a momentum indicator which creates a weighted moving average based on the sum of two Rate of Change oscillators. The result is a single line with peaks and valleys. Used with the 60 minute chart, we look for peaks as sell zones and valleys as buy zones, for sake of brevity. Mote previous peaks in the indicator accurately alert us to “possible” inflection points.
At the present time, Coppock is indicating difficulty in regaining the moving averages. We are cautious to begin with, so this top on the 60 minute is reason to lean to the short side. If the indicator continues lower, it will be a result of price action failing at this juncture.
We took profits in the last potion of our YRD trade early on Tuesday for a gain of +3.00.
Happy Trading – CV