Example of Trading using Technical (MACD) - with Tesla as example

If we plan to take up positions for a stock using technicals.  How should I do it?  Now, let us look at a simple example using the MACD indicator with Tesla $TSLA as an example.

This is done assuming that you have done your due diligence to qualify the company using fundamental analysis and are aware of the Macro developments.  

For those of you who are doing Dollar Cost Averaging (DCA), please continue and do not stop.

1D chart of Tesla as of 2226hrs, 09Aug2022

Looking at the 1D chart, the last decline of Tesla took about 32 days (ie 1.5 months) and the climb took about 51 days (ie 2.5 months) using 1D MACD. 

Should there be a cross-over of the overbought region for the MACD 1D chart, Tesla should start a downward trend. During this downtrend, there would be some days of up and some days of down but the magnitude of the drop is much more than that of rising. 

As of now, the MACD is yet to cross over. Stochastic has started a downtrend but not MACD, or EMA as yet.

Based on my Technical analysis (TA), I am expecting the price to peak and come down. MACD is a lagging indicator and it should be confirmed over the next few days. Should the CPI on Wed (10 Aug 2022) be bearish, the drop in price could be worse. Essentially, we are not paying attention to prices but only looking at the 1D MACD indicator.

Based on my TA (disregarding macro and fundamentals - which we should not), I would save the allocated monthly investment sums till 1D MACD has a cross-over in the oversold region. it could well be 1-2 months away.  No strategy is foolproof and thus this strategy can be wrong too.  As always, please research before investing.

@TigerStars