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 ...