A hammer candlestick pattern appearing at the bottom of a downtrend indicates that selling pressure is weakening and buyers are starting to regain control. The candle has a small body near the top with a long lower shadow, showing that sellers pushed the price sharply lower during the session but buyers managed to pull it back up before closing. This rejection of lower prices often signals a potential bullish reversal, especially when the hammer forms near a strong support zone or after continuous bearish candles. Higher confirmation comes when the next candle closes above the hammer’s high with strong volume.