Help with Technical analysis

GTPL was trading @ 70, All of a sudden in one candle it hits 50? That’s really huge move. Almost more than 15% move? in one candle!

Can someone explain why such candles form? Specially this happens with less volumes scrips

This is common scenario with illiquid stocks ,or stocks that have very low avg daily volume/transactions. As a result a single big order can effect the whole price dynamics of an illiquid stocks cause there aren’t many orders on the opposite side to properly consume that sudden surge of liquidity. The 11:15 candle in GTPL shows this clearly.

All of the candles to the left are extremely illiquid with tiny volumes and then all of a sudden this 11:15 candle came with a 36.7 k volume which caused that big candle. That sudden rise in Sell orders in one candle caused the price to drop like a rock in that 1 candle and then again the candle closed at the avg trading price of GTPL. Clearly you can see the manipulation in this stock.

General advice is to avoid trading such illiquid stocks


Technical analysis plays a role in the career of a successful trader. You will improve your technical skills by practicing hard on the demo account. Never take demo account as an informal thing. It has importance and you must have to fulfill the requirements for analyzing the market on the base of technical aspects.