SPDR S&P 500 (SPY)

[risk on]

When in a down or uptrend, and the trend has a reversal candle, which itself is immediately followed by another reversal candle , in this case “ hammers “ aka “ hatchets “ ( “dueling hatchets” more intriguing, I guess ) , the rule of thumb is that the two reversals tend to negate each other and the initial trend before the pattern continues.

This pattern tends to be more consistent on larger fractals ( 4 hr, daily , weekly) , and if you look at the recent big drop , there are multiple occurrences on the daily chart.