You and another gentleman who plays roulette have discovered the secret of all so called "random" events. He says it rather simply. "Whatever goes up, must come down". This applies to SUM, LDR, ROOT, WIDTH, O/E, H/L, etc. Putting it to practical use on a consistant basis is the difficult part. Personally, I believe the answer lies in the rather new area of mathematics called FRACTAL GEOMETRY. Once someone puts this together, ALL CASINOS and STATE LOTTERIES will be defunct. When I first tried Pick 3 here in Texas - last November 2006, the first time I played I won $820 using this WAVE concept. But, I spent many, many hours back testing and should have stuck it out. Instead, I got impatient and greedy and started purchasing every piece of software available. What I used to win was an old FREE program called DUKE. I carefully plotted the skip pattern for a 30 day period noting the winning skip pattern: 49/25/1, 25/13/1, 17/9/1(the default), 13/7/1, 9/5/1, and 7/4/1. There was a definite WAVE PATTERN. Then, I also plotted the SNIFFS. There was NO SNIFF, SNIFF LEFT, SNIFF CENTER, and SNIFF RIGHT. There was also another WAVE PATTERN for the sniffs. Finally, DUKE spits out nine numbers for each sniff, so I plotted the number. Say, the 7th number from the left was the winner, I plotted a 7 on the number graph. There was a WAVE PATTERN there as well. After spending many hours of running DUKE and plotting the three graphs, I started predicting which SKIP, SNIFF, and OFFSET would hit with some pretty remarkable results on about the 15th day of back testing. HOWEVER, PREDICTING(GUESSING) ALL FOUR IS DIFFICULT. I even plotted when DUKE would win or lose. That was/is the most difficult part of the process. So, you have WAVE PATTERNS for WINs, SKIPs, SNIFFs, and OFFSETs. Had I just stuck with DUKE and played all NINE NUMBERS OF A SNIFF instead of playing only three or four numbers, I WOULD HAVE FAIRED MUCH, MUCH BETTER. This concept can be used with any system one uses for any random game etc. If you track ODD/EVEN AND HIGH/LOW for all three positions in Pick 3, and predict/guess all 6 correctly, you will have around 12 combinations that if hit, will BE A STRAIGHT HIT. I did this the other night and shocked myself. However, the probability of picking all six for one drawing is 1/2 X 1/2 X 1/2 X 1/2 X 1/2 X 1/2 = 1/64. But, by OBSERVING THE WAVE PATTERN, you greatly change or alter this probability. For example, looking at the last few drawings at position 1 you note: E E O O E, then it appears as though an EVEN number is likely to hit on the next drawing. When looking at position 1 for HIGH/LOW you note: H L H L H L L H, the next drawing would more than likely be a HIGH number. So, if you predict all six correctly - that is HIGH/LOW FOR POSITIONS 1-3 AND ODD/EVEN FOR POSITIONS 1-3, then you will have around 12 combinations to play as STRAIGHT BETS. The other night here in Texas, I guessed OEO HLL would be the outcome based on the wave of the past few drawings. That meant that for position 1, the possibilities were ODD AND HIGH. This means I was predicting a 5,7, or 9 hitting in position 1. For position 2, EVEN AND LOW, the numbers could be 2 or 4. For position 3, ODD AND LOW, the numbers could be 1 or 3. So, we have 3 numbers in position 1, 2 numbers in position 2, and 2 numbers in position 3. That translates into 3 X 2 X 2 = 12 STRAIGHT COMBOS TO BET ON.
i.e. 521 - 523 - 541 - 543(winner!!!!!) - 721 - 723 - 741 - 743 - 921 - 923 - 941 - 943
You ARE ON THE CORRECT PATH. YOU ARE MUCH FARTHER DOWN THE ROAD THAN I AM, BUT AT AGE 63, I'M STILL LEARNING. GOOD LUCK AND GOD SPEED.

You touched on a few good points. Some of what you described is similar to card counting in blackjack. The reason card counting along with the proper betting strategy is so devastating to casinos is its simplicity in keeping track of the Highs and Lows of the Wave. Everyone has that power to see these events and keep track of it all, it's the learning, practice and diligence that prevents most people from counting cards. It can take allot of effort, however, I foresee a time when everyone will be able to process information with the ease of the most powerful supercomputer. It's evolution, humans are getting better and better at utilizing that gray stuff. Eventually, everyone will be able to count cards and predict outcomes with little to no effort. The casinos and lotteries will have to create games with immense improbable possibilities of winning; no one will play.