# Hammer Doji: A Rebound Signal in a Downtrend, a Candlestick Pattern Every Trader Must Know

Do you often see strange patterns on the Candlestick chart but don't know what they represent? Today, let's talk about a very practical one — **Hammer Doji**.

# # What is a Doji?

"Doji" comes from Japanese, meaning "same". In simple terms: **Opening Price = Closing Price**. Thus, the Candlestick has no body and looks like a line. Depending on the length of the upper and lower shadows, it can be further divided into "Long-legged Doji", "Dragonfly Doji", and so on.

What does a Hammer Doji look like? # #

The Dragonfly Doji (with a long lower shadow and a short upper shadow) followed closely by a strong bullish Candlestick is known as the Hammer Doji. It typically appears in a **downtrend**, resembling a hammer that "pounds out" the bottom, suggesting that the price may be about to Rebound.

# # How to make money with it?

1. **Don't rely solely on this pattern** — It's best to combine it with other indicators (like Ichimoku, Fibonacci) for confirmation.
2. **Set Limit Buy** — Place an order slightly below the current price and wait for a Rebound.
3. **Set a target profit in advance** — Calculate the target level based on the Ichimoku-Fibonacci combination strategy.
4. **Don't be greedy** — Take the profit when it's good, don't wait for it to skyrocket.

**Key Points**: A Doji itself has no direction; the key is its position and the surrounding Candlesticks. Appearing in a downtrend = possible Rebound; appearing in an uptrend = possible pullback. This is the foundation of technical analysis, and many traders rely on these patterns to find entry points.