Capitulation occurs when a significant proportion of investors give in to fear and sell within a short period of time, resulting in a sharp drop in the price of a security or market against a backdrop of high trading volume.
Surrender marks a short-term price low followed by at least a rally in relief.
Until the price recovers significantly, there is no guarantee that the apparent “surrender” will not be followed by an additional sharp drop.
Surrender causes more turnover among investors, allowing a recovery by replacing risk-averse sellers with risk-tolerant buyers, but it cannot guarantee that these buyers will not end up selling even lower.
The Accumulation/Distribution Line (A/D) measures the supply and demand of an asset or security by looking at where price closed in a period range and then multiplying that by volume.
A bull trap means a reversal that forces market participants who are on the wrong side of the price movement to close positions with unexpected losses.
A bullish engulfing pattern is a candlestick pattern that forms when a small black candlestick the next day is followed by a large white candlestick whose body completely overlaps or engulfs the body of the previous day’s candlestick.
Consolidation is a technical analysis term used to describe the price movement of a stock within a given range of support and resistance over a period of time.