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Glossary

Definitions of terms used in Alstrum and trading.

A​

AlphaNet​

Alstrum's proprietary machine learning model ensemble that generates trading signals.

ATR (Average True Range)​

A volatility indicator measuring the average range between high and low prices over a period.

B​

Bearish​

Expecting prices to fall. A bearish signal suggests selling or shorting.

Bullish​

Expecting prices to rise. A bullish signal suggests buying or going long.

C​

Candlestick​

A chart representation showing open, high, low, and close prices for a time period.

Confidence Score​

A percentage (0-100%) indicating how certain Alstrum's ML model is about a prediction.

Confluence​

Multiple technical factors aligning at the same price level, increasing probability.

D​

Discount Zone​

In SMC, a price area below the 50% level of a range - considered undervalued and good for buying.

Distribution​

Institutional selling activity, often occurring at market tops.

E​

Entry​

The price at which you open a position (buy or sell).

Exit​

The price at which you close a position.

F​

Fair Value Gap (FVG)​

A price zone where no trading occurred due to rapid price movement, creating an imbalance. Learn more →

Fibonacci​

A sequence of numbers where each is the sum of the previous two. Used for retracement levels (23.6%, 38.2%, 50%, 61.8%).

H​

Higher Timeframe (HTF)​

A longer time period chart (e.g., daily, weekly) used to identify major trends.

HOLD Signal​

Alstrum signal indicating no clear directional bias - suggesting to wait rather than trade.

I​

Institutional Traders​

Large financial entities (hedge funds, banks) that move significant market volume.

L​

Limit Order​

An order to buy/sell at a specific price or better.

Liquidity​

The ease with which an asset can be bought or sold. Also refers to stop loss clusters in SMC.

Liquidity Grab​

A quick price move to trigger stop losses before reversing. Also called "stop hunt."

Long​

A position that profits when price rises. "Going long" means buying.

Lower Timeframe (LTF)​

A shorter time period chart (e.g., 5m, 15m) used for entries and fine-tuning.

M​

Market Order​

An order to buy/sell immediately at the current market price.

Market Structure​

The pattern of higher highs/lows (uptrend) or lower highs/lows (downtrend).

ML (Machine Learning)​

Artificial intelligence that learns patterns from data to make predictions.

O​

Order Block (OB)​

A price zone where institutional traders placed large orders. Acts as support/resistance. Learn more →

P​

Paper Trading​

Simulated trading without real money, used for practice and testing strategies.

Position​

An open trade - either long (bought) or short (sold).

Premium Zone​

In SMC, a price area above the 50% level of a range - considered overvalued and good for selling.

Price Action​

Trading based on raw price movement rather than indicators.

R​

Resistance​

A price level where selling pressure may overcome buying pressure, preventing further rise.

Retracement​

A temporary price movement against the main trend before continuation.

Risk/Reward Ratio​

The potential profit compared to potential loss on a trade. 1:3 means risking $1 to potentially make $3.

S​

Short​

A position that profits when price falls. "Going short" means selling (borrowed shares).

Signal​

Alstrum's ML-generated trading indication (STRONG_BUY, BUY, HOLD, SELL, STRONG_SELL).

Smart Money Concepts (SMC)​

A trading methodology focused on identifying institutional trading patterns. Learn more →

Stop Loss​

An order that automatically closes a position at a predetermined loss level.

STRONG_BUY Signal​

Alstrum's highest conviction bullish signal, indicating strong upside expected.

STRONG_SELL Signal​

Alstrum's highest conviction bearish signal, indicating strong downside expected.

Support​

A price level where buying pressure may overcome selling pressure, preventing further decline.

Swing Trading​

A trading style holding positions for days to weeks, capturing medium-term moves.

T​

Take Profit​

A predetermined price level where you close a position to lock in gains.

Timeframe​

The time period each candlestick represents (5m, 15m, 1h, 4h, 1d, etc.).

Trace​

Alstrum's AI analysis feature that explains signal reasoning in plain language.

Trend​

The overall direction of price movement - up (bullish), down (bearish), or sideways.

V​

Volatility​

The degree of price variation over time. High volatility means larger price swings.

Volt​

Alstrum's ML signal screener that scans 8,800+ stocks for trading opportunities.

Volume​

The number of shares traded in a given period. Indicator of participation and conviction.

W​

Watchlist​

A saved list of stocks you want to monitor.

Wick (Shadow)​

The thin lines on a candlestick showing the high and low beyond the open/close.

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