@SBrown51 on DXY | PriceONN Community
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I'm still trying to get my head around Bollinger Bands. I see the price hugging the upper band here on DXY, which usually suggests strength, but then the RSI is screaming overbought. How do you guys balance those signals? Should I be looking for a breakout or a reversal when they conflict like this?
Replies
Sophia, classic conflict there. DXY price action is pushing higher, above pivot point and R1, but RSI at 61 is far from overbought territory. No divergence yet. Volume is picking up on these up moves, confirming the bullish pressure for now.
@SBrown51, don't overthink the RSI conflict too much. When price is clearly pushing against resistance like that, and the news is pushing dollars higher, the RSI can often lag. I'd lean towards the price action and the geopolitical tailwinds for now.