ELI5: Explain Like I'm 5

Whipsaw

Okay, imagine you're holding a rope and swinging it back and forth really fast. Now, imagine that the rope suddenly stops moving in one direction and starts moving in the opposite direction just as fast.

This sudden change of direction is what we call a "whipsaw." It happens when something is moving quickly in one direction, but then suddenly changes direction just as quickly.

Now, let's say you and your friend are playing a game where you're trying to catch a ball that your friend is throwing to you. But, your friend starts throwing the ball to you in different directions really quickly, making it hard for you to catch it. This is similar to what happens in the stock market when prices are going up quickly and then suddenly drop just as fast. This is a whipsaw in the stock market.

So, remember that a whipsaw is when something is moving quickly in one direction, but then suddenly changes direction just as quickly.
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