WickCheck / Trading school / Dollar index
Dollar indexDXYIntermediate
A measure of the US dollar against six major currencies, mostly the euro.
What it means
Because EUR/USD makes up most of the index, DXY and EUR/USD usually move opposite. ICT traders compare them for SMT divergence.
How to spot it
- DXY rising usually means EUR/USD and GBP/USD falling.
Common mistakes
- Treating DXY moves as a signal for every pair.
Related terms
CorrelationHow closely two markets move together, from +1 (same way) to −1 (opposite).…SMT divergenceWhen two related markets disagree: one makes a new high (or low) and the other d…Higher-timeframe biasThe expected direction from a bigger timeframe (4h, daily, weekly), used to deci…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.