The iMAX3 indicator for MetaTrader 5 (MT5) is a modified version of the original iMAX indicator, which determines trend reversal/direction. This version of the iMax3 indicator is developed by combining the iMAXhp and iMAXhpx indicators, which work together to read the market even in fast trending conditions.
The indicator filters out irregular movements in the market and follows the established trend towards the exhaustion zone with greater accuracy. In other words, it provides a clear trend direction even in unstable market conditions.
Thus, the iMAX3 indicator is one of the best indicators that accurately shows trend reversal/direction as it is not susceptible to random spikes caused by sudden volatility in the market.
How to Trade with the iMax3 Indicator
The screenshot above shows the trend analysis of the iMAX3 indicator on the EUR/NZD currency pair. The blue and grey lines show the reversal zone/trend direction of the instrument in the financial market.
Thus, the indicator signals a possible change in the market trend when two lines cross. You can look for an opportunity to buy/long or sell/short an instrument when the blue and grey lines cross up/down respectively.
Setting
The indicator comes with the following settings:
Step: step size
Auto step mode: step size auto selection (Yes/No)
Use iMAX mode: use iMAX mode (Yes/No)
Use HP mode: use HP mode (Yes/No)
Use HPX mode: use HPX mode (Yes/No)
Conclusion
The iMAX3 indicator is a trend analyzer designed to filter out false trend reversal signals caused by sudden market volatility. This is an ideal indicator for scalpers and day/intraday traders.
