Whipsaw
In trading, a whipsaw refers to a volatile market condition where the price of an asset moves rapidly in one direction, then suddenly reverses and moves in the opposite direction. This type of market behavior can be challenging for traders to navigate, as it can quickly result in losses if they are on the wrong side of the trade. The term “whipsaw” comes from the motion of a saw blade, which moves back and forth rapidly in a similar way. Overall, whipsaw movements can be caused by a variety of factors, including changes in market sentiment, economic data releases, geopolitical events, and other unexpected news or events that affect investor behavior.