I notice for some of the technical traders tend to use technical analysis to trade small cap stocks which is completely wrong.
To use technical analysis correctly, it should be use to trade liquid stocks. Small cap stocks tend to be illiquid & can be manipulate. Rules of thumb, mid cap to large cap stocks are more suitable for technical analysis.
How to tell from the charts, whether the stocks are liquid or illiquid?
The first & second stocks chart belongs to illiquid stock and possible market manipulation.