Long Term Update: Capitulation

Definition for Capitulation:

When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into less risky investments. True capitulation involves extremely high volume and sharp declines. It usually is indicated by panic selling. 

The term is a derived from a military term which refers to surrender and it is exactly what happened here, sharp decline at BTCchina followed by europeans this morning. I am watching carefully the VWAP first negative deviation line located at $380, so far the bottom at Bitstamp has been at $382.

chartRegarding my open trade I refuse to sell in the middle of a panic selling also because the daily RSI is almost at zero, totally oversold. I think there will be a strong reaction once the panic is gone and i need this rebounce to close this trade limiting damage as much as possible.
As usual time will tell.

Advertisements