A bullish hammer pattern is a single-candlestick formation that appears after a downtrend and signals a potential trend reversal. It has a small real body near the top of the candle, a long lower shadow (usually at least twice the body), and little to no upper shadow, showing that sellers pushed prices sharply lower but buyers regained control and closed the price near the opening level. This reflects strong buying interest at lower levels and rejection of further downside. The bullish signal becomes stronger when the hammer forms at a key support zone, after a prolonged decline, and is confirmed by the next candle closing above the hammer’s high with increased volume.