Glossary – H
Hammer: The Hammer candlestick forms when a stock moves significantly lower after the open, but rallies to close well above the low of the candle. The resulting candlestick looks like a square lollipop, or resembles a hammer. If this candlestick forms during in an uptrend instead of a downtrend, it is considered a Hanging Man.
Hanging Man: Contrary to the Hammer, the Hanging Man candlestick forms when a stock moves significantly lower after the open, but rallies to close well above the low of the candle. The resulting candlestick looks like a square lollipop. The hanging man forms in an uptrend, while the hammer forms in a downtrend. More on Hammer vs. Hanging Man.
Harami: A two candle pattern with the second candle being a smaller body and being completely contained within the range of the previous body, and is the opposite color.
Harami Cross: A two candle pattern similar to the Harami. The difference is that the last candle is a Doji.
Hard-to-Borrow (HTB): An inventory used by brokers to designate stocks that are unavailable for borrowing for short sale transactions without locating shares.
Hard-to-Borrow (HTB) fees: A fee based on the interest rate or negative rebate the clearing firm charges when you short a security that is in low supply. Read more about HTB fees.
Head and Shoulders: A bearish reversal pattern marked by three (or more) highs with the middle high (the head) being higher than the others (the shoulders). When the trend/demand line (neckline) connecting the lows at the bottom of the pattern is broken, the pattern is completed.
Head and Shoulders (Inverted): A bullish reversal pattern marked by three (or more) prominent lows with a middle low (the head) being lower than the others (the shoulders). When the trend/demand line (neckline) connecting the highs at the top of the pattern is broken, the pattern is complete.
Hidden Divergence (Bearish): Occurs when the indicator forms a higher high, but the stock price action forms lower high.
Hidden Divergence (Bullish): Occurs when the indicator forms a lower low, but the stock price action forms a higher low.
High-Low Index: A breadth indicator that is based on the number of stocks recording new 52-week highs and new 52-week lows.
Hindenburg Omen: The Hindenburg Omen is meant to warn of potential weakness in the market. Three criteria are required to activate the omen. First, NYSE new highs and new lows must both be more than 2.8% of advances plus declines. Second, the NY Composite is above the level it was 50 days ago. Third, the number of new highs cannot be more than double the number of new lows. The activation period is good for 30 days. Once active, a sell signal is triggered when the McClellan Oscillator moves below zero and negated when the McClellan Oscillator moves back above zero.
HOLDRs: Holding Company Depository Receipts. Launched by Merrill Lynch, HOLDRs trade just like stocks on the American Stock Exchange. Each HOLDR is a basket of stocks designed to track the performance of a particular industry segment. For example, the Regional Bank HOLDRs (RKH) consist of stock from about 20 regional banks.
Horizontal Line: A price overlay consisting of a straight, horizontal line on the chart at a specified price level.