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 Glossary   >   W   >   "Whipsaw" Definition   

        Whipsaw

A condition where an investor"s security transaction is quickly followed by an opposite reaction. Sometimes referred to as "being whipped".

When a share price moves in one direction, and then abruptly reverses direction, it is known as a whipsaw. Whipsaws are dangerous to traders because the first movement may throw up a buy signal, completely wrong-footing the trader when the price subsequently tumbles.

Whipsaw


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Whipsaw - A condition where an investor"s security transaction is quickly followed by an opposite reaction. Sometimes referred to as "being whipped".

When a share price moves in one direction, and then abruptly reverses direction, it is known as a whipsaw. Whipsaws are dangerous to traders because the first movement may throw up a buy signal, completely wrong-footing the trader when the price subsequently tumbles.


Whipsaw : a condition where an investor"s security transaction is quickly followed by an opposite reaction. sometimes referred to as "being whipped".

when a share price moves in one direction, and then abruptly reverses direction, it is known as a whipsaw. whipsaws are dangerous to traders because the first movement may throw up a buy signal, completely wrong-footing the trader when the price subsequently tumbles.