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Nikita (SEBI RA)

7th Nov Β· SEBI-Registered Analyst

Capitulation Phase – Panic Selling Before Reversal πŸ’£πŸ“Š

πŸ“Š The Capitulation Phase marks the final panic wave of a downtrend β€” extreme selling on record volume, usually followed by a sharp bounce. βœ… Formation: Large red candle with record volume. Price collapses but recovers partially intraday. Followed by low-volume stabilization phase. βœ… Meaning: Final surrender by weak holders; institutions absorb supply β†’ reversal ahead. πŸ“Œ Example: Stock crashes β‚Ή410 β†’ β‚Ή370 on 4Γ— volume, closes β‚Ή380 β†’ next day inside candle β†’ Capitulation Phase β†’ potential bottom formation. 🧠 Tip: Wait for bullish confirmation next session β€” never buy during panic, buy after stability.

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