Capitulation Phase β Panic Selling Before Reversal π£π
π The Capitulation Phase marks the final panic wave of a downtrend β extreme selling on record volume, usually followed by a sharp bounce.
β
Formation:
Large red candle with record volume.
Price collapses but recovers partially intraday.
Followed by low-volume stabilization phase.
β
Meaning: Final surrender by weak holders; institutions absorb supply β reversal ahead.
π Example: Stock crashes βΉ410 β βΉ370 on 4Γ volume, closes βΉ380 β next day inside candle β Capitulation Phase β potential bottom formation.
π§ Tip: Wait for bullish confirmation next session β never buy during panic, buy after stability.
CCL
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