Notice the downtrend of the favorite’s horse betting odds. This is a trend you must not enter against! That is what I actually did in my Betfair trading session yesterday! Fortunately I managed to turn a €110 loss into a €22 loss thanks to odds bottoming with a double bottom reversal signal. Yet the trading video I recorded is a fine example of why you should avoid trading against the trend and wait for a confirmed reversal pattern before even thinking of entering against your friend… I mean trend. You see, trend is your friend!
According to the Betfair price graph, the horse’s betting odds began trending downwards as soon as the support level at 2.80 broke. The odds even confirmed the developing downtrend with a minor pullback to the support level if you look closely at the betting graph, before going south. The downtrend didn’t meet any resistance until the odds shortened at 1.85, which was the trend’s low. The double bottom that was printed on the price graph there indicated the reversal and I was fortunate to trade long – that is to lay – and recoup some of my losses.
Hopefully you’ll enjoy the trading video, although I did have trouble speaking in English! Maybe it’s because I created the video early in the morning!
