Wednesday, January 23, 2008

Capitulation

Capitulation

By definition, capitulation means to surrender or give up. The technical annalist will use the term to isolate a point in time when investors have decided to give up on trying to recapture lost gains as a result of falling stock prices. On capitulation day, investors gripped by fear and panic will sell at any price.




Capitulation day occurs at the end of a corrective period and never at the beginning.




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