Which of the following is a contrary indicator?
A) odd-lot trading
B) breadth of market and market volume
C) short-interest and the advance/decline line
D) new highs-new lows indicator and the TRIN measure

Question

Quizplus · Accepted Answer

The odd-lot trading is a contrary indicator, meaning that it tends to move in the opposite direction of the overall market trend. When odd-lot investors start to buy heavily, it is generally a sign that the market is reaching a top and about to fall. Conversely, when they start to sell heavily, it is a sign that the market is reaching a bottom and about to rise.

Which of the Following Is a Contrary Indicator