Forex trading system – Drew have shown that enthusiasm of odd lot investors for stocks at certain periods may signal danger in the market, while an indifferent or bearish attitude may signal a market low point.

Each day, the number of shares bought and sold in odd lots on the New York Stock Exchange during the preceding trading day are released by the Exchange and published in leading newspapers. The index used in this formula is the Odd Lot Balance Index originated by Garfield A. Drew and regularly published by Drew Investment Associates of Boston. It is a three-month moving average of the ratio of odd lot sales to purchases, multiplied by 100. An index, for example, shows that sales exactly equalled purchases; a figure of 90 means that sales were 90 percent of purchases. The higher the index goes, the more stock odd lot investors are selling relative to their purchases, and the lower it goes, the more stock they are buying relative to their sales.

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[tags]Day Stock Trading[/tags]