Definition
Whipsaw describes the movement of a security when, at a particular time, the security's price is moving in one direction but then quickly pivots to move in the opposite direction. There are two types of whipsaw patterns. The first involves an upward movement in a share price, which is then followed by a drastic downward move causing the share's price to fall relative to its original position. The
In Panel Profits
In the Panel Profits market platform, Whipsaw: Definition, What Happens to Stock Price, and Example applies standard equities & market mechanics principles to comic assets and physical collections. Trading volume and liquidity spreads reflect secondary market dealer and auction transactions.
Common mistakes
Do not infer unobserved prices.