Cut Through the Noise (on DXY) With This Free IndicatorU.S. Dollar Currency IndexTVC:DXYAlchemyMarketsWhen the data is messy, I’d rather watch what price is actually respecting. Today was a good example. PCE came in softer, but ADP and Chicago PMI were stronger. Instead of trying to overthink every release, I just watched whether DXY actually changed behaviour. I will always be a proponent of saying that everyone should use a Bollinger Band as their default "moving average". The reason is because price can wick-wack around an EMA, and produce confusing signals. The envelope of a Bollinger Bands can shield you from some of that noise. You’d just need to adjust the settings a little: **Settings I use:** - 20 EMA — 1 SD - 50 EMA — 1 SD - 100 EMA — 0.5 SD - 200 EMA — 0.25 SD The main idea is simple: find the EMA an asset has been respecting most recently. If price breaks out on one side of the band and keeps trending (that means not breaking through the opposite side right after), that reads as 'respect'. So when an asset returns to the EMA band, I'm inclined to believe it would hold; until proven otherwise. For the DXY, the 4H band is still holding for now. If it loses that structure and retests it from below, that would be the first sign to me that dollar momentum is starting to roll over. One small thing I missed in the video: You can also throw in the stochastic RSI to read the momentum. Divergences, oversold, or overbought signals can sometimes tip you off on whether an EMA band will continue to be respected or not. For now, the DXY-4H shows and oversold signal, and hence it is more likely to hold. That's it for now. Take care and trade safe, everybody. - Yang