whipsaw

When a signal says go one way, then quickly flips the other way, making you lose on both.

The fuller meaning

A rapid sequence of false signals in opposite directions, typical of moving-average crossovers, MACD and other trend tools in sideways markets. Whipsaws are the price of lagging trend tools; filters, higher-timeframe context or standing aside in ranges reduce them.

whipsaw.

whipsaw

The fuller meaning

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