Is type 3 power steering fluid supposed to be red the color appears similar ATF?

Yes, type 3 power steering fluid is typically red in color. This is due to the addition of a red dye to the fluid to help distinguish it from other fluids in the vehicle. The color of ATF (automatic transmission fluid) can also vary, but it is typically a reddish-brown color. Therefore, it is important to check the fluid color and refer to the vehicle owner's manual to ensure you are using the correct fluid for your vehicle's power steering system.