// TRADING TERMINOLOGY

What is Capitulation?

The point in time when investors give up any previous gains by selling their positions during periods of decline.

In-Depth Explanation

Capitulation often marks the bottom of a bear market, as the "weak hands" have finished selling and only long-term holders remain.

Practical Example

"After a 30% drop, the market saw a final 5% spike in volume, signaling capitulation."

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