Sports trading in betting exchanges often implicates basic technical analysis of betting graphs. Lightning fast betting in live events though, makes applying technical analysis a difficult task that requires valuable time and effort. Trading in a live football or tennis game requires concentration and quick reactions, let alone betting in live horse racing markets where the betting graph won’t remind you anything from the common stock charts. Still, technical analysis may not waste your time and help you make money, if certain rules are to be followed.
Betfair Graph of Getafe v Levante 2-1 at the 88th minute today
When a sports event goes live and betting is allowed during live play, the market behavior changes dramatically. The effect is perhaps not so apparent in football games, but if we are talking about horse racing, the change is more than obvious right from the first second of in-play betting. Odds can increase or decrease by 10% or more in a matter of seconds and it’s not that rare to get trapped in a trade when the horse falls and odds climb to 1000 instantly. Perhaps that is the main reason most casual sports traders enter a market by laying, not willing to risk their money in such an occasion. This is not always the best approach however, since usually the favorite horse’s odds continue shortening until the horse crosses the finish line, drawing the most smooth downtrend line in a betting graph.
If a sports trader decides to take his business in the live betting field, he should have prepared himself for tough decisions and extreme time pressure. It is the latter that will eventually drive him away from applying technical analysis. When a horse race lasts 3 or 5 minutes and 100% gains or losses can happen in that duration of time, the trader should always be alert and have constructed his plan beforehand. If he tries to pay attention to the betting graph and draw a couple of trendlines or support lines, the game is over as he would have lost precious time. Note that when trading live sports events, you spend most of your time hovering the mouse pointer over the lay or back odds, always ready to click and place instantly a trading order. If you wander off the trading platform in order to draw some fancy technical indicator, you might have lost the opportunity for a profitable trade. And during 3 minutes, there won’t be many.
Technical analysis can help you make money during in-play trading, if it is applied before the sport event goes live. Before kick off the sports trader must analyze the betting graph of his choice, draw the lines he finds most suitable and add the indicator that works best for him. The second the game turns in-play, he should focus on placing bets and entering trades fast and efficient. And when the odds break below the support level he had drawn 3 minutes ago will definitely pay off.