Whipsaw Patterns
The origin of the term "whipsaw" is derived from the push and pull action of lumberjacks when cutting wood with a saw of the same name. A trader is considered to be "whipsawed" when the price of a security they have just invested in abruptly moves in the opposite and unexpected direction. Whipsaw patterns most notably occur in a volatile market in which price fluctuations are unpredictable. Day traders or other short-term investors are accustomed to being whipsawed. Long-term, buy-and-hold investors can often endure market volatility and still achieve gains.
Opponent Process
This model identifies the mechanical tug-of-war between market forces. The A-Process represents the surge of Momentum, where aggressive capital flow drives an asset away from its baseline; the B-Process is the inevitable Mean Reversion—the statistical counter-force that pulls the price back toward equilibrium as that initial move reaches exhaustion.