A rapid, severe price decline followed by a quick recovery, often within minutes. This is one of the more quantitative concepts in forex, more commonly used by systematic or algorithmic traders than by manual discretionary traders.
A rapid, severe price decline followed by a quick recovery, often within minutes. This is one of the more quantitative concepts in forex, more commonly used by systematic or algorithmic traders than by manual discretionary traders.
It illustrates how liquidity gaps and automated trading can amplify sudden volatility. At the intermediate level, this becomes increasingly relevant as traders begin refining strategies, tightening risk controls, and reading the market more critically.
Seen historically in events like the 2019 New Year's JPY flash crash. Most traders come across this while reviewing charts, monitoring news feeds, or checking their account dashboard, and being able to spot it quickly is a useful practical skill.
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