Whipsaw
Technical analysisA signal that triggers and immediately reverses, producing a loss with no real move.
Usually a symptom of the wrong regime rather than a missing filter.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 4 terms
A signal that triggers and immediately reverses, producing a loss with no real move.
Usually a symptom of the wrong regime rather than a missing filter.
A nine-period EMA of the MACD line, used as the trigger for MACD crossovers.
The classic MACD signal, and a late one. It whipsaws badly in ranging markets, which is precisely why the zero-line filter exists.
Averaging price data to suppress short-term noise, as Heikin-Ashi does by blending each bar with the one before it.
It buys clarity by discarding information, and it flatters backtests badly — because the whipsaws it removed are exactly the ones that would have stopped you out live.
An ATR-based trailing indicator that flips between acting as support and resistance.
Very popular with Indian intraday traders. A trend-follower, so it whipsaws in ranges.