Whipsaw: Definition, What Happens to Stock Price, and Example
Whipsaw patterns are most notable in volatile markets, where price movements are erratic and unpredictable. Day traders, accustomed to short-term fluctuations, are particularly vulnerable, while long-term, buy-and-hold investors can often weather the volatility and emerge with gains (Investopedia). Whipsaw in trading refers to a situation where a security’s price suddenly moves in the opposite direction…