Whipsaw – A sudden market move that reverses quickly, “whipping” traders out of positions. Traders use “whipsaw” to describe a volatile condition where a sharp price move is immediately followed by an equally sharp reversal. Automated systems often get caught by whipsaws – for example, a bot may enter on a breakout only to see the price whip back and wipe out profits. Example: “Our trend-following EA got whipsawed when EUR/USD spiked then slammed back down.”

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