IMI Indicator

IMI Indicator

IMI indicator for mt4 – download free. Best mt4 Overbought/oversold indicator.

The IMI (Intraday Momentum Index) indicator for MetaTrader is a short-term trading tool for trend analysis. It is built with data from the Relative Strength Index (RSI) and the opening/closing price of a candlestick within a defined period.

The indicator functions as an oscillator that swings between two price extremes (overbought and oversold zones). The IMI indicator essentially helps you to identify levels where the price of an asset may likely reverse.

The indicator designates level 70 as an overbought zone and level 30 as an oversold zone. Price is expected to reverse once it trends to either of the two extremes (level 70 and 30)

The IMI indicator is ideal to be used in a trending market to minimize false signals. Besides, it is also recommended to be used in sync with price action/other technical indicators for trade entries.

Furthermore, the indicator is suitable for novice and experienced forex traders. Moreover, it is also recommended for scalping and day/intraday trading activities.

How To Trade With The IMI Indicator

The above screenshot depicts how the indicator would look on your chart after installation. It also illustrates how to identify a high probability trade setup.

BUY Signal: Firstly, ensure that the market is trending to the upside. Next is to wait for the indicator’s line to touch the oversold level. You may then open a BUY/LONG position after price action forms a bullish reversal candlestick pattern (e.g. bullish engulfing).

SELL Signal: Firstly, ensure that the market is trending to the downside. Next is to wait for the indicator’s line to touch the overbought level. You may then open a SELL/Short position after price action forms a bearish reversal candlestick pattern (e.g. bearish engulfing).

Conclusion
The IMI indicator for MT4 is the best trend reversal tool for identifying the overbought and oversold levels in the market. The indicator is however not immune to false signals as no indicator is the Holy Grail. Hence, it is recommended to be used in a trending market. Finally, the indicator is free to download.