Reddit Discussion Analysis: Structure-Based vs Indicator Trading for XAUUSD

The Reddit discussion highlights a trader’s shift from indicator-based (RSI, MACD) to structure-based trading for XAUUSD, focusing on liquidity sweeps, break of structure (BOS), fair value gaps (FVGs), order blocks, and session highs/lows [0]. This approach aligns with Smart Money Concepts (SMC), which prioritize institutional flow over lagging indicators [1]. Gold’s high liquidity (~$163bn daily volume in 2023) makes it suitable for structure-based strategies [3]. A backtested liquidity sweep + FVG strategy showed a 75-77% win rate over 250+ trades (2022-2025) [6].

• Structure vs Indicators
  : Indicators serve as filters but not predictors; structure-based trading reduces random entries and tightens risk [0].
• ICT Relevance
  : ICT concepts (liquidity sweeps) apply to gold futures but require avoiding cultish elements [0].
• Timeframe Strategy
  : Higher timeframes (HTF) for bias and lower timeframes (LTF) for execution balance frequency and probability [0].

• Risks
  : Lack of long-term performance data (backtests cover only 3 years), unclear impact of macro events (Fed hikes, geopolitics), and no trader success rate data beyond backtests [6].
• Opportunities
  : Alignment with institutional flow, tight risk management via structure levels, and optimal execution during high-liquidity sessions (London/NY overlap) [4].

Structure-based trading for XAUUSD focuses on liquidity and institutional flow, outperforming indicator-based methods in reducing random entries. Gold’s liquidity supports this approach, and backtests show promising results. Traders should use HTF for bias and LTF for execution, while being aware of gaps in long-term performance data.