Another example of how this works (much older though):

SHOWIFY was beaten by MAXIMGUN on 31/08/2006 in an 11K race. SHOWIFY went on the win his next race (15/09/2006) by 5.5 lengths in a 9K race. This suggested that MAXIMGUN should be a bet on 9K races or under.

MAXIMGUN races in a 20K race on 17/09/2006 - NO BET (Over 9K)
MAXIMGUN races in a 8K race on 3/11/2006 - LOST
MAXIMGUN races in a 11K race on 17/12/2006 - NO BET (Over 9K)
MAXIMGUN races in a 8K race on 26/12/2006 - BET WIN $15.30

This was an obvious bet when you look at the other favs in the race:

NARING GOLD - Neither horse that had beaten him in the previous race had gone on to win anything ( one raced in a 20K race the other in an 8K race ).

PENHALE - Neither horse from his 3rd on 21/11/2006 had gone on to win anything.

URBAN FORCE was a chance with the horse that ran 2nd to him going on to win a victory at 8K

SYDIBELLE - was also a chance with one horse behind him going on to win an $8K race.

The others in the race had no form from prior races to suggest they could win.