Reddit Post Analysis: Structure-Based Trading for XAUUSD

The trader’s shift from indicators (RSI/MACD) to structure-based trading (liquidity sweeps, order blocks, fair value gaps) aligns with Smart Money Concepts (SMC). Liquidity sweeps take stop-loss levels to signal institutional involvement, order blocks are institutional order zones preceding strong moves, and fair value gaps (FVGs) are price imbalances that often retest. For XAUUSD, these concepts are effective during peak liquidity sessions (London/New York).

1. Structure-based trading reduces random entries and tightens risk compared to indicator-based approaches.
2. Indicators should be used as filters, not predictors, to avoid unfounded directional bias.
3. ICT concepts (liquidity sweeps) are relevant for gold but require avoiding cultish practices.
4. High-probability trades are infrequent—use higher timeframes for bias and lower for execution.

• Risks
  : No backtest data for the trader’s strategy; potential ignorance of macro factors (Fed policy, geopolitics) critical for gold trading.
• Opportunities
  : Applying SMC during peak liquidity sessions enhances trade effectiveness; combining structure-based trading with macro analysis may improve results.

Core concepts: liquidity sweeps, order blocks, FVGs. Peak liquidity sessions for XAUUSD: London (12AM–6AM EST) and New York (9:30AM–4PM EST). The strategy uses precise stop placements behind order blocks/FVGs for favorable risk-reward ratios.