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Inverted Hammer & Shooting Star Candlestick Pattern can give very accurate Trend Reversal signs in a Bullish or a Bearish Trend. The Appearance of an Inverted hammer after a Bearish trend denotes that the Sellers are exhausted and are no more in the mood to dominate the market and drive the Prices down, it also indicates that the current price levels are attractive to many Buyers and they are ready to drive the markets in the upward direction. A lot of new Long trades are initiated after the sighting of an Inverted Hammer and a lot of Shorts are covered.
Inverted Hammer can complement your existing Trading Strategy and increase your Success rate drastically.
Shooting Star Candlestick Pattern is the exact reverse of Inverted Hammer Candlestick Pattern. The candlesticks are the same, but Shooting star appears after an upward trend unlike the Inverted Hammer which appears after the downward trend.
The interpretation is pretty opposite to that of the Inverted Hammer, now the Sellers / Bears are excited and wanna drive the markets down, wanna take their profits and exit the trade... for many these price levels are no more attractive to stay in the trade.
A lot of profit taking happens when a Shooting star is sighted in the upward trend, and a lot of new Short orders are placed.
It clearly denotes the losing grip of the Bulls and the increasing new strength of the bears.
For confirmation wait for one candle that can close below the shooting star candle's close and then enter.
Hope this helps. Keep rocking and keep growing.