Home » Finance Destinations Corner » What Does Capitulation Look Like?

What Does Capitulation Look Like?

Alexander Ross • • 6 min read
What Does Capitulation Look Like?

Using Technical Analysis to Identify Capitulations
Technical analysts can visually identify capitulation using candlestick charts. Hammer candles often form at the end of a selling frenzy when the lowest price is made, as capitulation sets in and signals a price bottom followed by a reversal bounce on heavy volume.

What does capitulation mean in the stock market?

By definition, capitulation means to surrender or give up. ... However, if the majority of investors decides to capitulate and give up on the stock, then there will be a sharp decline in its price. When this occurrence is significant across the entire market, it is known as market capitulation.

What is inverse capitulation?

A prominent cryptocurrency analyst says that if the cryptocurrency can “flip” $14,100 into support, it will result in “inverse capitulation.” In other words, Bitcoin could surge massively higher, likely by dozens of percent, if it manages to turn that level into support.

Alexander Ross
Author

Alexander Ross

Alexander Ross has covered the video game industry for a decade, writing deep dives on game design, esports tournaments, VR developments, and gaming culture.