Are you familiar with Capitulation? – Info Forex

Are you familiar with Capitulation?


When the financiers give up preceding gains in stock price thru selling equities in lieu to get out of the market and into lesser investment risks, real capitulation is about enormous high volume & share declines. It is an indicator of panic selling though. Capitulation came from a military term, which means surrender or give up. After capitulation selling method, it is believed that there is a great sale that will happen. This conviction is about the people who would like to get stocks for various reasons like forced selling because of margin calls. The cost must be, hypothetically, reverse or bounce off the lows. It may mean some investors believe that the real capitulation is the symbol of a bottom.

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