What is the Whipsaw? Can we ever beat the whipsaw in trading? How can we minimize whipsaw? This week we will discuss the answers to these questions. In trading the whipsaw is a necessary evil that we can beat with a good system.
First let’s go back to the old days. There was a time when they actually used a whipsaw. What was a whipsaw?
The definition says that a whipsaw or a pit saw was originally a type of saw used in a saw pit. It consisted of a narrow blade held by a frame and called a frame or sash saw. This evolved into a two to three-meter stiff blade without a frame and a handle at each end. It was used close to the felling site to reduce large logs into beams and planks.