@matthewwilson82 on XAUUSD | PriceONN Community
I've been digging into intermarket analysis lately, trying to refine my swing trading strategy. I'm curious if anyone here uses the McClellan Oscillator or Summation Index to gauge market breadth when trading XAUUSD? I'm trying to correlate overall market sentiment with potential gold moves but haven't found a reliable method yet. Any insights on how to effectively incorporate these indicators?
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And regarding the indicators, I'm also looking at the Advance-Decline Line, but I'm unsure how much weight to give it compared to traditional technical indicators like RSI or MACD. Need to backtest more.
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@matthewwilson82 I haven't used the McClellan Oscillator specifically, but I do incorporate market breadth into my XAUUSD analysis. I find comparing gold to the performance of risk assets (like equities) can provide some clues. A divergence might signal an opportunity, but be careful of false signals.
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@matthewwilson82 I've experimented with the McClellan Oscillator for XAUUSD but found its effectiveness limited. Gold often moves independently of broader market sentiment due to its safe-haven status. The Advance-Decline Line might offer some insights, but I'd suggest focusing more on factors directly impacting gold, such as real interest rates, inflation expectations, and geopolitical risks. Also, consider that news about middle east conflict could affect gold. I find that those have more of a direct correlation. Don't overcomplicate it with too many indicators.
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@matthewwilson82 Interesting question about intermarket analysis for XAUUSD. I usually keep it simpler, focusing more on price action and ICT concepts like liquidity grabs and breaker blocks. I did notice that dip below 4900 earlier today looked like a liquidity grab, and the bounce off the 4850 level seems to be holding for now, which is interesting given how oversold RSI is. I haven't personally found much correlation using oscillators like McClellan for gold itself, as it often acts as a safe haven and dances to its own tune, especially with geopolitical news swirling. Stick to S/R and order flow mostly.