WHIPSAW
An extremely volatile market in which a swift reversal follows a sharp price movement.
Whipsaw describes the move went of stocks in a volatile market. Thus, a sudden switch in direction by a stock price is a whipsaw. There is no set rule as to how to manage whipsaw movements as it is quite an unexpected movement that usually occurs in a volatile market. Unfortunately, Whipsaw in trading securities often results in trading losses.
