coppock indicator

Here is the Coppock indicator from the last 28 yrs on the XAO. (sorry the graph is a bit faded, not sure what happened)

"A bull market is signaled when the Coppock Indicator turns up from below zero."

http://www.incrediblecharts.com/technical/coppock_indicator.php

"The indicator is trend-following, and based on averages, so by its nature it doesn't pick a market bottom, but rather shows when a rally has become established."

http://en.wikipedia.org/wiki/Coppock_curve

So for people not wanting to pick the bottom, but are waiting till the market enters its next bull stage (might be a while though!) this could be one to look out for.

I added in the green and red lines to signify the 0 crossover on the coppock Indicator. Although it is not suppose to generate sell signals, I added lines just to show how if you bought when it turned from negative to positive, and sold when it went back below zero, the last 5 out of 6 signals would have provided profits. That being said, all of the buy signals would have had an opportunity to sell for a profit at some time before it crossed below zero anyway.

What does everyone else think of this indicator?