Hammer Doji: The Candle That Seeks to Bounce

Did you see that candle that looks like a hammer on the chart? It's called Hammer Doji and it's the classic signal that a downtrend might be ending.

What's up with the Doji?

The word comes from Japanese and means “same time” — basically, it is a candle where the price opens and closes at the same level. With no visible body, only the wicks (shadows) long.

When that hammer candlestick appears after a flying dragon (Dragonfly Doji), boom: potential bullish reversal. It's as if the market is saying “we tried to go down but couldn't, now it goes up”.

How to operate this

1. Wait for confirmation — a strong bullish candle after the Hammer Doji
2. Entry: Limit buy order a little below the current price ( in case there is a pullback )
3. Take profit: Based on Ichimoku + Fibonacci (don't improvise)
4. Don't be greedy — take reasonable profits

The move: This pattern works best when it aligns with other bullish indicators. Candlesticks alone are not enough — combine with Ichimoku, fundamentals, the whole combo.

Note: Hammer Doji ≠ guarantee of an increase. It is an increased probability, nothing more.