whipsaw
A sharp price move quickly reversed the other way.
Definitions
A whipsaw is a rapid price swing in one direction immediately followed by a sharp reversal, often stopping out traders on both sides. It is common in highly volatile markets.
whipsaw In A Sentence
Origin & Usage
From the back-and-forth motion of a two-person whipsaw used to cut timber.
People Also Ask
What is a whipsaw in trading?
It's a rapid price swing in one direction immediately followed by a sharp reversal, often stopping out traders positioned on both sides.
When do whipsaws happen?
They're common in highly volatile or choppy markets, where prices lurch back and forth without a clear trend.
Where does the term come from?
From the back-and-forth motion of a two-person whipsaw used to cut timber — the price 'saws' traders in both directions.
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