1-Min Gold Taylor Technique1-Min Gold Taylor Technique – Intraday Reversal Scalping for XAUUSD
This open-source strategy adapts core ideas from George Douglas Taylor's 1950s "Taylor Trading Technique" (also called the Book Method) to a high-frequency, 1-minute scalping setup on gold (XAUUSD).
Taylor observed that markets often follow a repeating 3-day rhythm driven by institutional ("smart money") behavior:
- **Buy Day** — Lows form after decline; buy on rejection of lower prices.
- **Sell Day** — Rally to test highs, but often fails to sustain (distribution).
- **Sell Short Day** — Downside follow-through after failed highs.
The method emphasizes trading "false moves" (liquidity grabs or stop hunts) around key levels, with objective entries on reversals.
This script translates those principles into an intraday system by focusing on:
- Liquidity sweeps of the Asian session range or previous day high/low (false breaks to grab stops).
- Immediate rejection wicks confirming reversal.
- Confirmation from SuperTrend (ATR-based trend filter) flip/alignment.
- Reclaim/rejection of dynamic levels (VWAP or 20 EMA) for added confluence.
The combination creates a high-probability reversal filter tailored to gold's volatility during London & New York sessions, where sweeps and quick mean-reversion are common.
Entry Rules
LONG (inspired by Taylor's Buy Day reversal after false low):
- Bullish sweep: Price dips ≤ Asian Low or Prev Day Low (with buffer), closes above.
- Rejection wick: Current low < previous low, but closes higher.
- SuperTrend bullish (flip this bar OR already bullish).
- Price reclaims VWAP OR above 20 EMA.
- Only during London or NY sessions (high liquidity).
SHORT (mirror for Sell Short Day after false high):
- Bearish sweep: Price spikes ≥ Asian High or Prev Day High (with buffer), closes below.
- Rejection wick: Current high > previous high, but closes lower.
- SuperTrend bearish (flip this bar OR already bearish).
- Price rejects VWAP OR below 20 EMA.
- Only during London or NY sessions.
No pyramiding; one position max.
Risk & Exit Management
- Stop Loss: Fixed points below entry low (long) / above entry high (short) — default 6 points.
- Base Risk:Reward = 3:1 (adjustable 1–10).
- Scaled partial exits (qty %):
- TP1 (33%): ~1/3 target (early — near VWAP level).
- TP2 (33%): ~2/3 target (mid — near Asian mid).
- TP3 (34%): Full target (extended — near opposite extreme like Asian high/PDH).
- Optional trailing stop (disabled by default).
- Auto close all positions at NY end (default 17:00 GMT) to avoid overnight risk.
Visual Aids
- Asian range box (yellow) + midline (orange circles).
- Prev Day High (red crosses) / Low (green crosses).
- VWAP (blue line) + 20 EMA (purple).
- SuperTrend dots (lime bullish / red bearish).
- Entry triangles + text ("LONG"/"SHORT").
- Session backgrounds: gray (Asian), orange (London), blue (NY).
Alerts
- Long/Short entry signals.
- Bullish/Bearish sweep warnings (early heads-up for potential setups).
Realistic Backtesting Guidelines
To publish non-misleading results:
- Initial Capital: $10,000–$25,000 (typical retail account).
- Position sizing: 1–5% of equity per trade (change default_qty_value from 100% to avoid over-risking).
- Commission: 0.02–0.05% per side (ECN-style).
- Slippage: 2–5 ticks (gold moves fast on 1m during volatility).
- Dataset: 12–36 months of 1-minute XAUUSD data → aim for 600+ trades.
- Risk per trade: 0.5–1.5% max with defaults — never exceed sustainable levels.
Gold 1-minute charts are noisy; major news (NFP, FOMC, rates) can cause outsized moves — avoid or widen SL during events. Strategy works best in ranging-to-mild-trend sessions with clear sweeps.
How to Use
1. Apply to XAUUSD 1-minute chart.
2. Verify GMT session times match your broker (adjust inputs if needed).
3. Start with defaults: 3:1 RR, 6-pt SL, trailing off.
4. Focus on London open → NY overlap for liquidity.
5. Use discretion: best setups show strong confluence (sweep + wick + SuperTrend flip + level reclaim).
6. Demo/forward-test 2–3 months minimum before live.
Publish Recommendation
- Use a clean chart: only this strategy, no extra indicators/drawings.
- Show realistic Strategy Tester results (with commission/slippage applied).
- No exaggerated equity curves or unrealistic capital.
Open-source for transparency. Test thoroughly and trade responsibly.
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