Back when I performed in a general folk band (in Berkeley in the late seventies), I used always to wear an item or so of "folk" clothing, from no matter what culture -- I had a couple of embroidered smocks from Central America that went with jeans; a black Nepali dress with handmade silver buttons; a simple wraparound dress made of Japanese batik fabric; a handwoven sweater. I didn't want to project a "hey I'm hip" image exactly, but I did think handmade clothing helped frame the handmade music we were making.

More recently I've played sea music with a buncha guys, one of whom liked to emphasize the working-class nature of sea music by wearing plain trousers and a plaid shirt; another always emphasized the sea-going aspect by wearing a rather grotty, moth-eaten fisherman's sweater and stained canvas pants; a third emphasized his role as a performer by wearing a vivid Hawaiian shirt and tight black jeans; and a fourth liked to evoke the past in a collarless white shirt, dark trousers, a gray plaid vest, and a(n American) civil war cap. What's a girl to do? I tried each of those approaches, and they all worked well for me. Most of the time, the fourth option worked best for the kind of music we did and where we did it, so I often opted for a "timeless" look that would allow folks to imagine me in whatever setting the music evoked in them. This meant I wore a plain, long, full black skirt with a (vaguely lacy or flannel, depending on the season) blouse, sometimes accompanied by a weskit or shawl.

Hope that helps!