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Mark Minervini

Minervini Trend Template

Scan 5,000+ stocks daily against Minervini's 8-point Stage 2 trend template. Price above stacked MAs, near 52-week highs, strong RS. Each setup graded A+ to B.

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What is this pattern?

Mark Minervini's Trend Template defines the eight specific criteria that a stock must meet to be in a confirmed Stage 2 uptrend — the phase of a stock's lifecycle where the most explosive gains occur. Minervini developed this template through decades of professional trading, including his 1997 U.S. Investing Championship victory with a 155% return, and refined it into a systematic, repeatable screening process.

The eight criteria work as a filter that ensures a stock has the right technical posture for a momentum trade. Price must be above the 50-day, 150-day, and 200-day moving averages. The 150-day must be above the 200-day. The 200-day must be trending up for at least one month. Price must be at least 25% above the 52-week low and within 25% of the 52-week high. And relative strength must rank in the upper tier compared to the market.

What makes the Trend Template powerful is not any single criterion — it is the combination of all eight. Each criterion alone would produce many false positives. But when all eight align simultaneously, they define a stock in a confirmed uptrend with institutional sponsorship, strong momentum, and the technical structure to support further advances. Stocks that meet all eight criteria are the launch candidates for Minervini's specific entry patterns like the VCP.

Origin & History

Developed by Mark Minervini and published in Trade Like a Stock Market Wizard (2013) and Think & Trade Like a Champion (2017). Minervini won the U.S. Investing Championship in 1997 with a 155% return and again in 2021. The Trend Template is a refinement of Stan Weinstein's Stage 2 criteria, made more specific and actionable through Minervini's eight-point checklist. Minervini developed the template through analysis of thousands of winning stocks over his 30+ year career.

Detection Criteria

Our scanner evaluates the following criteria when detecting Minervini Trend Template setups across 5,000+ stocks daily.

Price above 50, 150, and 200-day MAs
Price above all major MAs confirms the stock is in a sustained uptrend across all timeframes — the fundamental requirement for a Stage 2 classification.
Moving averages in ascending order
The 50-day above 150-day above 200-day creates a stacked bullish alignment that confirms institutional demand is driving prices progressively higher.
52-week high proximity
Stocks near their 52-week highs have cleared all overhead supply — there are no trapped holders looking to sell at breakeven, creating a path of least resistance higher.
Relative strength ranking
Top-tier relative strength confirms that institutional money is flowing into this stock specifically. Weak RS in a rising stock suggests it is merely rising with the market.
25%+ above 52-week low
Being well above the 52-week low ensures the stock has already demonstrated buying demand and is not a falling knife that happens to be near moving averages.

Grading Breakdown

For trend template stocks, an A+ grade means all 8 Minervini criteria are strongly met with price well above stacked MAs, within 10% of the 52-week high, and relative strength in the top 20%. This is not a prediction of future price movement — it is a way to prioritize which charts deserve your attention first.

A+
Textbook setup — strong confluence across all criteria. Highest conviction.
A
High-quality setup worth watching closely. Minor criteria may be slightly off.
B+
Decent setup with some reservations. One or two criteria fall short of ideal.
B
Pattern detected but lower conviction. Use as a watchlist candidate, not a trade trigger.

Common Mistakes to Avoid

Buying a stock that meets most but not all 8 criteria — Minervini insists on full compliance; partial matches have significantly lower success rates
Confusing meeting the trend template with a buy signal — the template identifies eligible stocks; you still need a specific entry pattern like a VCP within that template
Ignoring risk management — Minervini advocates strict position sizing and cutting losses at 7-8% maximum; the trend template is only one part of the complete system

How to Trade This Pattern

Entry

After confirming all 8 trend template criteria, enter on a specific setup pattern (VCP, high tight flag, or base breakout) with volume confirmation. Meeting the template alone is not a buy signal.

Stop Loss

Place stop 7-8% below the buy point. Minervini is strict about cutting losses quickly — his average loss is less than half his average gain, maintaining a favorable risk/reward ratio.

Price Target

Minervini targets 15-20% gains as the initial objective and trails stops to let winners run. He has stated that cutting losses short and letting winners run produces the majority of his returns.

This is educational content only. Not financial advice. Always do your own research and manage risk appropriately.

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AskLivermore scans 5,000+ NASDAQ and NYSE stocks daily · Not financial advice · Past performance does not guarantee future results