A Simple High Probability Swing Trade Set Up for UK Gilt Futures

Since the January of 2021, UK Gilt futures has been trending down sharply. One of the main reason why I always enjoy trading bond market is that its trend is very clear and also persistant. The price often follows a textbook style of breakouts and retracements, occurring at clear support and resistance levels. Recently, the price has made a new low and aims to test the next support area of 115~116. This indicates that the down trend is still very valid and we are only looking to enter sell positions. The price is currently at the impulse stage, which means that there is no immediate action for us to take now. We are looking to sell the pull backs from the previous support level of 120 area. We expect the price to retrace back with a bearish flag pattern. Once the sell limit orders are hit, our first target is the next support level of 115, and our second target is the 112 area. This is a good passive trading set up where you can combine with your intraday trading to diversify your portfolio.

We will update this post after the price comes near the entry zone.