Odd Lot Short Ratio
The Odd Lot Short Ratio is an indicator that reflects the sentiment of a group of investors that is almost always wrong in their assumptions of the direction of the market.
If the Odd Lot Short Ratio is rising, it means that more odd lotters are shorting stocks than are buying stocks in anticipation of a declining market. You can be sure that the market will move higher. If the Odd Lot Short Ratio is declining the market will invariably move lower.
This indicator is calculated by dividing odd lot short sales by odd lot sales.
This indicator should be used in conjunction with the others in order to make your market timing decisions.
The Odd Lot Short Ratio is calculated by taking the total odd lot short sales for a day, dividing it by the odd lot sales figure multiplied by 1000 (the Odd Lot Sales figure should be entered in thousands, the Odd Lot Short Sales figure should be entered as is) the resulting figure is then accumulated for ten days and divided by 10 to come up with a simple moving average. A line is then plotted on your screen.
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