odd-lot theory

Definition

A technical analysis theory based on using odd-lot trading behavior as a contrary indicator, under the assumption that odd lots are traded primarily by small investors who are on average less experienced than institutional investors. The theory has declined in popularity as historical data has failed to support it.

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odd-lot theory is ...

... part of the Technical Analysis subject.

Nearby Terms

occupational hazard
October Effect
odd lot
odd lot buy/sell ratio
odd-lot dealer
odd-lot theory
OECD
OEM
OEX
of record
off the books