Hammer candlestick - Candlestick pattern that develops when a security trades significantly lower than its opening, but rallies within the period to close near the opening price. This pattern forms a hammer-shaped candlestick, in which the lower shadow is at least twice the size of the real body. The body of the candlestick represents the difference between the open and closing prices, while the shadow shows the high and low prices for the period. When the hammer appears at the bottom of a downtrend or after a series of red candles, and possibly in oversold conditions, this indicates that a reversal is about to occur. In this case the hammer pattern is a bullish reversal. However, further bullish confirmation is required.
Hanging man candlestick - The hanging man and the hammer are basically the same candlestick patterns. The main difference between the two is in the location where the pattern develops. The bullish version of the hammer appears at the bottom of a downtrend, whereas the hanging man, the bearish version of the hammer, appears at the top of an uptrend. When the hanging man appears at the top of an uptrend or after a series of green candles, and possibly in overbought conditions, this indicates that a reversal is about to occur. In this case the hammer pattern, known as hanging man, is a bearish reversal. However, further bearish confirmation is required. If the next day the price opens below the previous day close and the bears (the sellers) are taking the price down, this is the bearish confirmation that the reversal has occurred.
Hedge - An investment made as a hedge has the goal of lowering the risk of unfavorable asset price changes. Typically, hedging involves taking an opposite or offsetting position in a similar security.
Hedge fund - A hedge fund is a limited partnership of private investors whose capital is managed by experienced fund managers. These managers employ a variety of tactics, such leveraging or trading in non-traditional assets, to generate returns on investments that are higher than average investment returns. Investment in hedge funds is frequently viewed as a dangerous alternative investment option since it typically has a high minimum investment requirement or net worth requirement and frequently targets wealthy clientele.
Heikin-Ashi charts - Heikin-Ashi charts are an offshoot of traditional candlestick charts created by Munehisa Homma in the 1700s. The Heikin-Ashi approach makes use of a modified pattern formation based on two-period averages rather than the open, high, low, and close used in traditional candlestick charts. The resulting Heikin-Ashi candlestick pattern attempts to better depict the trend by reducing some noise. This smooth out appearance of the chart makes it simpler to discern trends and reversals. However it also hides gaps and certain important price data.
High-frequency trading (HFT) - High-frequency trading (HFT) is a type of trading that moves lots of orders in a short period of time using potent computer programs. It analyzes several markets and executes orders in accordance with the state of the markets using sophisticated algorithms. Generally speaking, traders with the quickest execution times are more successful than those with slower times. HFT is distinguished from other trading styles by its high order-to-trade ratios and high turnover rates. Citadel LLC, IMC, Tower Research Capital, Virtu Financial, and Tradebot are the principal high-frequency trading companies in the United States.
High-yield bonds - High-yield bonds, commonly known as junk bonds, have lower credit ratings than investment-grade bonds, which causes them to have higher interest rates. Due to their increased default risk, high-yield bonds reward investors with a larger yield than investment-grade bonds. High-yield debt is typically issued by start-up businesses or capital-intensive organizations with high debt ratios. However, some high-yield bonds are fallen angels, or bonds that lost their stellar credit ratings.
Historical volatility (HV) - Historical volatility (HV) is a statistical indicator of how widely returns for a certain securities or market index have varied over time. In most cases, this metric is produced by calculating the average departure from the price of a financial instrument during the specified time frame. The most popular, though not exclusive, method for figuring out historical volatility is by using standard deviation. Generally speaking, a security is riskier the higher its historical volatility value. Given that risk might go either way—bullish or bearish—that outcome is not necessarily undesirable.
Holdings - Holdings are the contents of an investment portfolio held by an individual or an organization, such as a mutual fund or a pension fund. A variety of financial instruments, such as stocks, bonds, mutual funds, options, futures, and exchange-traded funds, may be included in a portfolio's holdings (ETFs).