Definition
Backtesting replays a trading strategy against historical price data to estimate how it would have performed. CryptoSignal Pro uses walk-forward backtesting with out-of-sample validation to reduce overfitting.
Also under “B”
Bollinger Bands
Bollinger Bands plot a moving average with upper and lower bands at two standard deviations. Price touching the outer bands suggests statistically extended conditions; a squeeze indicates low volatility before a potential breakout.
Break of Structure
A break of structure (BOS) occurs when price closes beyond a previous swing high (in an uptrend) or swing low (in a downtrend), confirming the continuation of trend direction in Smart Money Concepts analysis.
More terms
Altcoin
An altcoin is any cryptocurrency other than Bitcoin. Examples include Ethereum, Solana, and Avalanche. Altcoins often show amplified volatility relative to Bitcoin during both bull and bear cycles.
ATR
ATR (Average True Range) measures average price volatility over a lookback period. Traders use it to size stop losses proportionally to current market conditions rather than using fixed-point distances.
Confluence Score
A confluence score is a 0–100 rating that summarizes how strongly independent market-analysis layers agree on a trade setup. A score of 80+ qualifies for grade A+.