Setting up filters: Timeframe Period

The first and most important parameter on every timeframe is "Period". It determines how "fresh" or "stable" your analysis will be. Let's break it down.

📌 What is it?

This is the historical depth (number of bars) that the screener uses for calculations on the selected timeframe.

For example:

• Period 50 on 1D = the last 50 daily candles
• Period 100 on 1H = the last 100 hourly candles

All analysis is calculated based on these bars.

🎯 What is it for?

The period directly affects the sensitivity and reliability of signals:

• Short period → signals are more current, but there's a higher risk of false positives.
• Long period → signals are more stable, fewer false positives.

Choosing the right period helps filter out noise and show only the coins that match your trading horizon.

📈 Short vs Long Period: What's the difference?

🔥 Short period (up to 50 bars)

• Fast reaction to a new market regime
• Great for catching the start of trends and impulses
• Downside: more noise and false signals

🛡️ Long period (60–200+ bars)

• Stable statistics
• Less impact from individual anomalies
• Downside: slower to react to trend changes

⚡ Which timeframe and period should you choose?

The choice of timeframe always depends on your trading style, experience, and psychological resilience. The main rule: the shorter the trades, the smaller the timeframe.

🔥 Scalp and intraday (time in trade: minutes to a few hours)

• Main timeframes: 1H, 15M, 5M
• Recommended period: 30–70
• Pros: maximum detail, plenty of opportunities
• Cons: high noise and stress

📈 Swing trading (time in trade: 1–10 days)

• Main timeframes: 4H + 1D
• Recommended period: 50–100
• Why: balance between the global trend (on D1) and entry points (on 4H)

🛡️ Positional and long-term trading (time in trade: weeks to months)

• Main timeframes: 1D, 1W
• Recommended period: 80–200+
• Pros: most reliable signals, minimal noise, relaxed trading
• Cons: fewer trading ideas, not suited for quick profits

💡 Best practice — Multi-timeframe analysis

Use the combined top-down method:

• Higher timeframe (e.g. 1D) — identify the global trend and overall picture
• Middle timeframe (4H) — look for confirmation of the direction
• Lower timeframe (1H) — find the precise entry point

Example of a classic Power Move setup:

• 1D (period 50) — overall market picture
• 4H (period 50) — trend confirmation
• 1H (period 100) — entry point

There is also the well-known "Three Screens" system by Alexander Elder, which is built on the sequential analysis of three different timeframes. We'll cover it in the article on configuring multi-timeframe filters.

This approach helps filter out noise, find higher-quality signals, and see the full market picture.

🧠 How does the selected period work in Power Move algorithms?

• The more bars in the period, the more "reserve" candles are available for calculating "fair volatility" when anomalies are detected.
• The number of bars in your period is used to compare against Bitcoin on the same timeframe when calculating the Pearson correlation coefficient — a method named after British statistician Karl Pearson.
• Important nuance: if a coin doesn't have enough historical data on the selected timeframe (e.g. it's relatively new), it won't be included in the selection. The screener requires a complete set of bars for accurate calculations.