Hammer
Hammer is a financial term used to describe a situation in which the price of a security or asset drops significantly in a short period of time. This sudden drop in price is usually caused by a large sell-off of the security or asset, which can be triggered by a variety of factors, such as news of a company’s poor performance, a change in market sentiment, or a large investor selling their holdings. The term is derived from the analogy of a hammer being used to drive a nail into a piece of wood, as the sudden drop in price is often seen as a hammer-like blow to the security or asset.
History of the Term
The term “hammer” has been used in the financial world since at least the early 1900s. It was first used to describe a situation in which a stock or other security experienced a sudden and sharp decline in price. The term has since been used to describe any situation in which a security or asset experiences a sudden and sharp decline in price, regardless of the underlying cause.
Comparison Table
| Security/Asset | Price Before Hammer | Price After Hammer |
|---|---|---|
| Stock A | $50 | $30 |
| Stock B | $100 | $70 |
| Stock C | $200 | $150 |
Summary
In summary, a hammer is a financial term used to describe a situation in which the price of a security or asset drops significantly in a short period of time. This sudden drop in price is usually caused by a large sell-off of the security or asset, which can be triggered by a variety of factors. For more information about hammers and other financial terms, you can visit websites such as Investopedia, The Balance, and Yahoo Finance.
See Also
- Bear Market
- Bull Market
- Market Sentiment
- Technical Analysis
- Price Action
- Volatility
- Support and Resistance
- Moving Averages
- Trend Lines
- Chart Patterns
