In part 1 of Reading a Market I discussed how a book is balanced, and detailed what causes odds to move.
This is a short addition to this. The video highlights how slack in the book can be taken and how much there actually can be. This is a typical market, although the favourite is very short.
If you want the spreadsheet I am playing around with in the video, drop me an email at firstname.lastname@example.org and I’ll send it you. My intention is to put together a couple more trading videos to show exactly how this information can be used to good effect.
You may have heard me talk about the “ebb and flow” of a market. This is the “science” behind ebb and flow. Quite often traders will see a horse move 2 or 3 ticks against their position and they take a loss, only to see it come right back to where they started a few seconds later. This should help you to understand why this happens. Watch the video and see if it makes any sense. If you need any clarification give me a shout in comments. Although I welcome your emails, I am sure that if you are asking the question there are many others that would benefit from the answer. It also helps me to tailor my content to what I need to explain better.