Whipsaw
Definition of 'Whipsaw'A condition where a security's price heads in one direction, but then is followed quickly by a movement in the opposite direction. The origins of term is derived from the push and pull action used by lumberjacks to cut wood with a type of saw with the same name. |
|
Investopedia explains 'Whipsaw'There are two types of whipsaw patterns. The first involves an upward movement in the share price, which is then followed by a drastic downward move, which causes the share's price to fall relative to its original position. The second type involves the share price to drop for a little while, and then suddenly, the price abruptly surges towards positive gains relative to the stock's original position. |
Related Definitions
Articles Of Interest
-
Where's The Market Headed Now?
Whether up, down or sideways, learn about some of the factors that drive stock market moves. -
Tips For Investors In Volatile Markets
Find out what to look out for when trading during market instability. -
Understanding Volatility Measurements
How do you choose a fund with an optimal risk-reward combination? We teach you about standard deviation, beta and more! -
What burst the Mississippi bubble?
In 1715, France was essentially insolvent as a nation. Even though taxes were raised to extremely high levels, the hole that warfare had left in the French treasury was too deep. France began ... -
Turnaround Stocks: U-Turn To High Returns
Find out which catalysts can turn struggling stocks around to create a tidy profit. -
Do Adaptive Moving Averages Lead To Better Results?
These complex indicators can help traders interpret trend changes, but are they too good to be true? -
War's Influence On Wall Street
Blitzkrieg? Dawn raids? Sounds like the markets and the battlefield have a few things in common. -
What is a stock ticker?
A stock ticker is a report of the price for certain securities, updated continuously throughout the trading session by the various stock exchanges. A "tick" is any change in price, whether that ... -
Institutional Investors
Learn more about the advantages that financial institutions enjoy when buying and selling securities. -
Weighted Average
Learn how to weigh the relative importances of data points in a calculated average.
Free Annual Reports