German to English Medical Medical: Pharmaceuticals

Hello. I was wondering if this term in pharmaceuticals could mean anything other than "posing a diagnosis", "correct diagnostic evaluation", etc. Here's my context:

DE = Eine längerdauernde oder wiederholte Anwendung sollte nur bei strenger Indikationsstellung und unter fortlaufender Überwachung durch den Arzt erfolgen.
EN = Patients should be given long-term therapy or repeat administration only if a clear diagnosis has been made // only if the diagnosis have been correctly evaluated and under continuous medical monitoring.

It seems to me that there is confusion inherently in the term because indication is for the drug, diagnosis is for the patient and concerns a specific disorder. So could it mean that treatment should be given only if the indication is clearly right for the patient (streng)?

Thanks in advance!