Appling the dow theory to USD pairs

Discussion in 'Strategy Development' started by zf trader, Oct 17, 2005.

  1. If wanted to rework the dow theory that both the industrial and transportation averages must be above their 200 day moving before going long the DJIA, what currencies would you choose? I was thinking of using the pound to confirm the euro but the yen plays a greater role in the liquidity situation in the US economy. Other examples could be the CHF to confirm gold or the kiwi to confirm the aussie. Any thoughts?
  2. What sort of theory is that? Sounds arbitrary.