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Trading Glossary

Glossary trade refers to a type of trading strategy where traders use a predefined set of terms, definitions, or concepts to make informed decisions. It often involves industry-specific jargon, financial metrics, and analytical tools to navigate markets effectively.

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Hammer Candlestick

A bullish indicator that signals strong buying pressure, initially pushing the price down but closing near the high.

Hanging Man Candlestick

A bearish indicator that signals strong selling pressure, initially pushing the price up but closing near the low.

Harami

A candlestick pattern that forms when a small candle is contained within the range of the previous candle, indicating a potential trend reversal.

Harmonic price patterns

Harmonic price patterns are geometric patterns based on Fibonacci ratios like ABCD, butterfly, crab, and shark patterns.

Head and shoulders

A bearish reversal pattern that forms when a stock’s price rises to a peak and then falls, followed by a second rise to a higher peak, and then falls again.

Head fake

A false signal that leads traders to believe that a particular trend is emerging in the market.

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