Mark Minervini's trend template system has produced consistent returns across multiple decades, but finding stocks that meet his specific criteria requires precision most retail traders lack. The challenge isn't understanding the concept — it's executing the screen correctly when thousands of stocks trade daily.
Today's AskLivermore scan processed 5,044 stocks and surfaced 412 setups matching Minervini's template. That's roughly 8% of the market meeting his stringent requirements on any given day. The difference between profitable pattern recognition and endless chart scrolling comes down to systematic execution.
The Moving Average Sequence That Eliminates 90% of Stocks
Minervini's trend template demands a specific moving average alignment: 10-day above 20-day, 20-day above 50-day, 50-day above 150-day, and 150-day above 200-day. This hierarchy filters out choppy, directionless stocks that waste traders' time.
Most scanning platforms struggle with this multi-layered requirement. They'll catch the obvious 50-day above 200-day crossover but miss the nuanced short-term alignment that signals institutional accumulation. When the scanner flags ADEA at $30.13 with an A+ grade, it's because all four moving average relationships align perfectly — not just the headline indicators most traders check.
The 10-day and 20-day positioning matters more than most realize. Stocks consolidating near resistance often show flat or declining short-term averages even when the longer-term trend remains intact. ADEA's current structure shows the 10-day pulling away from the 20-day, suggesting fresh buying interest rather than stale consolidation.
Volume during consolidation phases reveals institutional intent. Research from StockCharts consistently shows that stocks with declining volume during pullbacks outperform those with persistent high volume during weakness. ADEA's average volume of 1.2M provides sufficient liquidity without the frantic selling that characterizes failing patterns.
Why ADI's $392 Price Creates Institutional Interest
Large-cap stocks like ADI present different dynamics than small-cap momentum plays. At $392.59 with a $195.1B market cap, institutional participation becomes mandatory for meaningful price movement. The scanner's A+ grade reflects not just technical alignment but the volume characteristics that suggest smart money accumulation.
ADI's 3.9M average volume creates natural support levels that smaller stocks lack. When pension funds and mutual funds establish positions, they leave footprints in the volume profile that persist for weeks. This institutional sponsorship — the concept that large money validates price levels — becomes crucial for sustained moves above key resistance.
Moving average slopes matter as much as positioning. ADI's 150-day and 200-day averages show consistent upward slopes, indicating sustained institutional interest rather than temporary technical alignment. This slope analysis — measuring the rate of change in longer-term averages — separates genuine trends from statistical noise.
The AAMI Setup That Reveals Scanner Limitations
Not every scan result deserves equal attention. AAMI scores an A grade but represents a weaker setup within the Minervini framework. At $68.18 with just 294K average volume, it lacks the liquidity that institutional players require for significant position building.
The volume constraint creates execution risk that scanning algorithms can't measure. AAMI might meet every technical requirement, but the 294K average volume means a single large order can distort price action unpredictably. This is why experienced traders often apply volume filters even when scanning for technically sound patterns.
Market cap considerations compound the liquidity issue. AAMI's $2.4B market cap falls into the awkward middle ground — too large for pure momentum plays but too small for institutional accumulation. The scanner correctly identifies the technical setup but can't account for these structural limitations that affect real-world execution.
The Contrarian Truth About Perfect Minervini Scans
Here's what most Minervini disciples miss: the cleanest technical setups often produce the worst returns. When every moving average aligns perfectly and the pattern looks textbook, you're likely buying at the end of the move, not the beginning.
The strongest performers often show slight technical imperfections that scare away pattern purists. A stock might have its 10-day average barely touching the 20-day instead of cleanly above it. Or the 50-day might show a minor wobble while maintaining its overall upward slope. These "flawed" setups frequently outperform the picture-perfect ones because they haven't attracted widespread attention yet.
Professional traders understand this paradox. They use Minervini's template as a starting point, then look for setups that meet 80% of the criteria rather than 100%. The remaining 20% represents opportunity — stocks that haven't been discovered by every scanner-wielding retail trader running the same screen.
Volume Analysis That Most Scanners Miss
Relative volume analysis separates institutional accumulation from retail speculation. The scanner examines not just absolute volume levels but volume patterns during different market conditions. ADEA's 1.2M average volume becomes meaningful when compared to its volume during previous consolidation periods.
Volume surge patterns often precede significant moves, but the timing matters. Early-stage accumulation shows subtle volume increases during pullbacks, while late-stage distribution shows volume spikes during rallies. The scanner's algorithm distinguishes between these patterns automatically.
Most retail scanners focus on simple volume thresholds — stocks trading above their 50-day average volume, for example. But this approach misses the nuanced patterns that characterize institutional activity. Professional-grade scanning examines volume distribution across different price levels, identifying accumulation zones that predict future support levels.
Position Sizing Based on Scanner Grades
The quality distribution among today's 412 setups illustrates why position sizing matters more than pattern recognition. ADI's A+ grade and $195B market cap suggest different risk characteristics than AAMI's A grade and $2.4B market cap. Experienced traders adjust position sizes accordingly.
Large-cap momentum plays like ADI typically warrant larger position sizes due to their institutional sponsorship and liquidity advantages. The reduced execution risk and stronger support levels justify increased allocation. Smaller plays like AAMI might offer higher percentage returns but require smaller position sizes due to increased volatility and liquidity constraints.
The scanner's grading system provides position sizing guidance through implied risk assessment. A+ setups generally support larger allocations than A- setups, assuming consistent risk management principles. This systematic approach removes emotional decision-making from position sizing calculations.
Remember that patterns are probabilistic, not predictive — past performance doesn't guarantee future results. Even the highest-graded setups can fail when market conditions shift or company-specific news emerges.
Your strongest setups are already identified and ranked. The Minervini scanner processes the entire market daily, surfacing opportunities like today's ADEA and ADI while filtering out the noise. Your setups are waiting.
AskLivermore scans every US stock daily. The strongest setups are sorted and waiting.
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