Setting up filters: Correlation with Bitcoin
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One of the most important parameters is "Correlation with Bitcoin". This filter helps you understand whether a coin is "doing its own thing" or simply following BTC's movements.
📌 What is it?
The screener calculates the Pearson correlation coefficient between a coin's price and Bitcoin on the selected timeframe and period.
The value always falls in the range from –1 to +1:
- The closer to +1 — the more closely the coin mirrors BTC.
- 0 — complete independence.
- Negative values — the coin moves in the opposite direction.
🎯 What is it for?
Bitcoin remains the primary "leader" for most altcoins. Understanding correlation helps you make more precise decisions and avoid false signals.
Using this filter, you can deliberately find coins that:
- Closely follow BTC
- Are more independent
- Move opposite to BTC (an excellent hedging tool)
📊 How to interpret correlation values?
Strong positive (0.7 to +1.0) — the coin almost mirrors BTC. Use BTC as the leading asset. Enter the altcoin after confirming Bitcoin's move. Ideal for trend trading.
Moderate positive (0.3 to 0.7) — there is a connection, but the coin has its own dynamics. BTC sets the general direction. Only trade the altcoin in the direction of Bitcoin's trend.
Weak or negligible (–0.3 to +0.3) — the coin is doing its own thing. The coin is independent. Ignore BTC's current movement and trade based on its own structure, volume, and Clean ATR. An excellent choice for finding individual pumps and alt-season plays.
Moderate negative (–0.7 to –0.3) — noticeable movement against BTC. Trade the altcoin in the opposite direction of Bitcoin's trend.
Strong negative (–1.0 to –0.7) — almost perfectly opposite movement. The coin often rises when BTC falls. Use for counter-trend trades and capital rotation.
Always trade on the timeframe for which you are accounting for correlation.
🔀 Multi-Timeframe Correlation
If on the higher timeframe (e.g. 1D) the correlation is weak, but on the lower one (where you plan your entry) it's already moderate or strong — the technical analysis on the coin may be completely overridden by Bitcoin's movement. Even if the altcoin's chart looks like it's "beautifully" rising, a sharp Bitcoin move will likely drag the coin along — and often with a larger range.
⚠️ Therefore, to find truly independent altcoins, it is recommended to set the filter to "Weak or negligible" simultaneously across all timeframes — both the higher one and the one where you plan your entry.
✅ Why is the Bitcoin correlation filter useful?
- Lets you consciously choose your trading style: follow BTC or look for independent moves
- Protects against "false" signals when technical analysis on a coin says one thing, but BTC is pulling it in the opposite direction
- Improves entry quality and risk management
By default, the filter is set to "Without filter" to show the maximum selection.
However, Power Move recommends configuring this powerful tool to fit your strategy right away. The screener will scan all coins and return only those that fully match the correlation conditions you've set.