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Non-Capitulation

Definition

Non-capitulation describes a market condition where investors, despite experiencing significant price declines, refuse to sell their assets in a panic. This indicates a strong conviction among holders, suggesting they believe in the long-term value of their investment even amidst adverse market sentiment. It contrasts with capitulation, which involves widespread panic selling and a surrender to market pressures. Periods of non-capitulation often precede market bottoms or periods of recovery.