Spikes

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Iron
Posts: 6793
Joined: Fri Dec 11, 2009 10:51 pm

When a horse's price drops suddenly due to a spike, does it normally return quickly to its previous level?

Thanks

Jeff
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Bet Angel
Posts: 4031
Joined: Tue Apr 14, 2009 3:47 pm

It all depends what has happened IMHO. The spike in yesterday had to retrace to a more normal level as Andy hinted in his post. Any experianced trader seeing that would instantly lay the crap out of it knowing it was bound to retrace.

If something jumped in 10 ticks on a long term steamer then it's not so clear. There are quite a few factors to take into account.
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Jimmy
Posts: 174
Joined: Wed Apr 15, 2009 6:29 pm

Hi,

Yes you have to be careful as it could be drifting our coming in. But if you have be watching it for a while and then all of a sudden 10 or more ticks eithier could just be a bookie lay or backing etc a large amount from the course. Which will the come back but you would have to study first etc.

Cheers

Jimmy
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