Odd-lot theory - Definition

A Technical Analysis theory/indicator based on the assumption that the small individual investor is always wrong. It is as applicable in forex trading as it is in stocks or commodities. People who subscribe to this theory would often encourage investors to study what Odd Lot traders do, and do the opposite. The actions of odd lotters were interpreted as contrary signals. The theory was the subject of much analysis in the 1960s and 1970s. By the 1990s, however, the theory had fallen out of use. Technology had made trading in any lots a profitable venture. The theory is no longer popular as analysis of data shows little evidence that the method works.



Terms near "Odd-lot theory"

OECD
OEM
OEX
OFEX
Off-Balance Sheet
Offer
Official Settlements Account
Offsetting Transaction
Offshore Bank
Old Lady
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