Financial Dictionary

A hammer is a candlestick with a small body near the top and a long lower wick, appearing after a decline. It suggests buyers pushed price back up and a reversal may follow.

The Hang Seng Index tracks the largest companies listed in Hong Kong, including many mainland Chinese firms. It is sensitive to Chinese economic policy and technology stocks.

A hanging man looks like a hammer but appears after a rise. It suggests selling pressure is building and the uptrend may weaken.

A harami is a two candle pattern where a small candle sits within the body of the previous larger candle. It signals that momentum is slowing and a reversal may follow.

Hash rate is the total computing power used to mine and secure a proof of work blockchain such as bitcoin. A rising hash rate means the network is harder to attack.

Hawkish describes a central bank stance that favours higher interest rates or tighter policy to fight inflation. A hawkish surprise usually strengthens the currency.

A head and shoulders is a bearish reversal pattern with three peaks, the middle one highest. A break below the neckline joining the two troughs is read as confirmation.

Headline inflation is the total change in consumer prices, including food and energy. It can swing sharply with oil prices.

A hedge fund is a pooled fund that uses a wide range of strategies, including leverage and short selling, to seek returns. Hedge funds face lighter regulation than retail funds and are open mainly to professional clients.

Hedging means opening a position to offset the risk of another, such as shorting an index to protect a portfolio of shares. It reduces potential losses but also limits gains and adds costs.

Heikin Ashi is a candlestick chart that averages price data to smooth out noise. It makes trends easier to see but does not show exact open and close prices.

High frequency trading uses powerful computers and algorithms to place very large numbers of orders in fractions of a second. It adds liquidity but has been linked to sudden, short lived price swings.

A high yield bond, also called a junk bond, has a credit rating below investment grade. It pays a higher interest rate to compensate for a greater risk of default.

Higher highs and higher lows describe an uptrend, where each peak and each trough is above the one before. A lower low is often the first sign the trend is ending.

Housing starts measure the number of new homes on which US construction began in a month. They are a guide to the health of the housing market and the wider economy.