Glossary - H

Glossary - H

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Hammer

Hammer candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. The resulting candlestick looks like a square lollipop with a long stick. If this candlestick forms during an advance, it is called a Hanging Man.

Hanging Man

Hanging Man candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. The resulting candlestick looks like a square lollipop with a long stick. If this candlestick forms during a decline, then it is called a Hammer.

Harami

A two-day pattern that has a small body day completely contained within the range of the previous body, and is the opposite color.

Harami Cross

A two-day pattern similar to the Harami. The difference is that the last day is a Doji.

Head and Shoulders Bottom

A bullish reversal pattern marked by three (or more) prominent troughs with a middle trough (the head) that is lower than the other troughs (the shoulders). When the trend line (neckline) connecting the peaks at the top of the pattern is broken, the pattern is complete. See our ChartSchool article on Head and Shoulders Bottom (Reversal).

Head and Shoulders Top

A bearish reversal pattern marked by three (or more) prominent peaks with a middle peak (the head) that is higher than the other peaks (the shoulders). When the trend line (neckline) connecting the troughs at the bottom of the pattern is broken, the pattern is complete. See our ChartSchool article on Head and Shoulders Top (Reversal).

Hidden Divergence (Bearish)

This situation occurs when the indicator forms a higher high and the security forms a lower high. Relative to the indicator, the security shows weakness that could be bearish. It is a backward bearish divergence. See our ChartSchool article on Momentum Oscillators.

Hidden Divergence (Bullish)

This situation occurs when the indicator forms a lower low and the security forms a higher low. Relative to the indicator, the security shows strength that could be bullish. It is a backward bullish divergence. See our ChartSchool article on Momentum Oscillators.

High-Low Index

A breadth indicator based on the number of stocks recording new 52-week highs and new 52-week lows. High-Low Index = (News Highs / (New Highs - New Lows)) x 100. See our ChartSchool article on the High-Low Index for more details.

Hindenburg Omen

Created by James Miekka, the Hindenburg Omen warns of potential weakness in the stock market. There are three criteria 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.

Horizontal Line

A price overlay consisting of a straight, horizontal line on the chart at a specified price level. Note that you can add multiple horizontal lines to a SharpChart by entering several price levels separated by commas.

Hull Moving Average (HMA)

The Hull Moving Average is a faster moving average developed by Alan Hull. Its calculation uses weighted moving averages to prioritize more recent values and greatly reduce lag. The resulting moving average is more responsive and well-suited for identifying entry points. See our ChartSchool article on the Hull Moving Average.