All terms
The point where holders give up and sell regardless of price.
Capitulation is mass surrender. Volume spikes, price drops hard and fast, and long term holders finally sell. It is emotionally the worst moment of a cycle.
It also tends to mark major lows, because after everyone who was going to sell has sold, very little supply remains to push price down.
Capitulation is visible on charts as a huge red candle on enormous volume, followed by a sharp bounce.
That you can identify capitulation while it happens. It is named afterward, when the low is known. Every large fall feels like the final one at the time, and most of them are not.
Common questions
How do you recognize capitulation?
Is capitulation always the bottom?
Where this comes up on the site
The guides that actually use this word, rather than a list of everything we have written.
Where to go next
More trading terms
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