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.

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.

Investment dictionary. . 2012.

Look at other dictionaries:

  • Whipsaw — Whip saw , v. t. 1. To saw with the whipsaw. [Webster 1913 Suppl.] 2. To defeat in, or cause to lose, two different bets at the same turn or in one play, as a player at faro who has made two bets at the same time, one that a card will lose and… …   The Collaborative International Dictionary of English

  • Whipsaw — 1) Выражение, описывающее ситуацию крайне волатильного рынка, где за резким ростом цены следует ее понижение. 2) Уменьшение капитала инвесторов, путем уговоров их продавать акции во время понижения и покупать во время повышения   Словарь терминов …   Финансовый словарь

  • whipsaw — whip‧saw [ˈwɪpsɔː ǁ sɒː] verb [transitive] FINANCE be whipsawed if investments or investors are whipsawed, they are trapped in a market where prices are falling and rising very quickly, and it is difficult to say what might happen: • The bond… …   Financial and business terms

  • whipsaw — ► NOUN ▪ a saw with a narrow blade and a handle at both ends. ► VERB (past part. whipsawn or whipsawed) N. Amer. 1) cut with a whipsaw. 2) informal subject to two difficult situations or opposing pressures at the same time …   English terms dictionary

  • whipsaw — [hwip′sô΄, wip′sô΄] n. any of several long bladed saws; esp., a crosscut saw with a tapering blade, from 5 to 71/ 2 feet long and with a handle at each end, used usually by two persons vt. ☆ 1. to cut with a whipsaw 2. to defeat or get the best… …   English World dictionary

  • Whipsaw — Whip saw , n. 1. A saw for dividing timber lengthwise, usually set in a frame, and worked by two persons; also, a fret saw. [1913 Webster] 2. A kind of narrow ripsaw, tapering from butt to point, with hook teeth and averaging from 5 to 71/2 feet… …   The Collaborative International Dictionary of English

  • whipsaw — 1. tv. to assault a person; to gang up and beat a person. □ The gang whip sawed the old man for about ten minutes. □ What kind of creeps would whipsaw an old buzzard like that? 2. tv. [for the stock market] to reduce the capital of investors by… …   Dictionary of American slang and colloquial expressions

  • whipsaw — I. noun Date: 15th century a narrow pit saw averaging 5 to 7 1/2 feet (1.5 to 2.3 meters) in length II. transitive verb Date: 1842 1. to saw with a whipsaw 2. to beset or victimize in two opposite ways at once, by a two phase operation, or by the …   New Collegiate Dictionary

  • whipsaw — /hwip saw , wip /, n., v., whipsawed, whipsawed or whipsawn, whipsawing. n. 1. a saw for two persons, as a pitsaw, used to divide timbers lengthwise. v.t. 2. to cut with a whipsaw. 3. to win two bets from (a person) at one turn or play, as at… …   Universalium

  • whipsaw — 1. noun a crosscut saw operated by two people 2. verb a) to operate a whipsaw b) to lose potential profit by buying shares just before the …   Wiktionary

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