The main confusion with candlestick charts and price action lies with the concept of timeframe.

In our above case, Jubilant Foodworks is in an uptrend as per the projected data points of that chart (which is in daily timeframe) but if we check lower time frames like 10 minutes time frame, we can clearly see it has started making continuous lower top and lower bottoms.

Now the choice of timeframe is based on the holding period of the strategy. If someone intends to just use daily time frame; his average trade will last several days or weeks but if someone intends to use lower time frames like 10 minutes, it will have more noise. So a scrip which is in the uptrend in the one-time frame can be in different trend in other time frames.

Jubilant Foods also gave a false breakout in the lower timeframe. The more false breakouts the more weaker the trend is. False breakout signifies bulls are just waiting for a ride to the moon as the stock is in already uptrend; it is just speculation buyers bottom fishing by aggressively buying and speculating a formation on swing low in daily timeframe. But downtrend in lower timeframe can break the swing low of the daily timeframe in the process too.  

Here goes some wild guess of use of lower time frame –

  1. Yesterday was the expiry; a positional trader who uses daily time frame may use daily time frame to put his trailing stop loss to maximize the profit during the roll over into futures contract of the next month.
  2. Intraday trader can short and keep updating the trailing stop loss in the respective swing highs (blue lines). (Well, it has hit stop loss in the false candle though).

The whole concept of Swing Trading lies on the foundations of trend analysis; hence we should discuss all kinds of aspects that create confusion!

Here goes an image which explains everything in a nutshell!