Fundamental information

Charts containing fundamental information aren't particularly common, but the addition of that information can be extremely useful. Fundamental information can include dividend dates, earnings release dates, stock splits, and the number of days people with inside information (legal inside information) may have bought or sold stock. This info relates almost exclusively to charts of stocks, so I stick to stocks in this section's discussion.

Figure 3-7:

A chart that includes a relative strength index (RSI).

Figure 3-7:

A chart that includes a relative strength index (RSI).

Needless to say, monitoring how a stock performs around the time dividends are paid or earnings are reported is helpful. If some patterns tend to repeat themselves, trying to trade around these dates may be a profitable strategy. Also, keep an eye on how stocks are bought and sold by company officials who have an intimate knowledge of their company's business activities.

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