The Minervini Trend Template
Finding new ideas is one of the key parts of trading. Not only do we want to source potential opportunities, but we want to listen to the stocks and setups to decipher the health of the market.
Mark Minervini, 2X US Investing Champion and the author of multiple excellent trading books, has developed key screens that streamline the process.
The Minervini Trend Template Criteria
Here is the criteria that he looks for:
- The current stock price is above both the 150-day and 200-day moving average
- The 150-day moving average is above the 200-day moving average
- The 50-day moving average is above both the 150-day and 200-day moving averages
- The current stock price is trading above the 50-day moving average
- The current stock price is at least 30% above it’s 52-week low
- The current stock price is within at least 25% of its 52-week high
- The relative strength score is greater than 70
- The 200-day moving average line is trending up for at least 1 month
We’ve built in multiple variations of these criteria into Deepvue Screen Presets that you can load in one click.
Go to Presets – Top Traders – Minervini
We have versions ranging from the 200 day trending up from 1 month to 5 months.
Using the Minervini Trend Templates
Which of these variations should you use?
Well, the answer depends on your preferred types of setup and how established you wish the uptrend to be.
For off the bottom moves and Powerplays, stick with the 1 Month variation. For more mature bases use the longer variations from 3 months to 5 months.
Listen to the stocks
As you use these screens, take note of both the total number of stocks and setups that pass through them.
A healthier market will have many more stocks in strong stage 2 uptrends that are trending constructively or forming sound bases.
Also pay attention to any groups showing up repeatedly or themes setting up together.
Look for Group Moves
The strongest stocks are typically part of a group theme driver by fundamental factors. For instance, TSLA in 2020 was the leader of the EV group which yielded many super-performance stocks
Look for Fundamental Growth and VCP Bases
As Mark runs through the stocks from his screens, in addition to group themes he is watching for superior earnings and sales growth, as well as his Volatility Contraction Pattern Setup.
A Volatility Contraction Pattern is a base that coils from left to right and get’s tighter and tighter as supply is wrung out. This leads to a clear pivot point and explosive moves.
NIO during the sister move to TSLA had triple digit sales growth and formed multiple VCP Setups:
Using RMV to find VCP Action and Tight Areas
In Deepvue, you can use Relative Measured Volatility to Identify tightening price action and VCP Entry points.
When this indicator goes under 10, price action is contracting and when this occurs up the right side of a base this can be an ideal buy point.
Key points: The Mark Minervini Trend Template and Screen
The Minervini Trend Template is an excellent source of quality ideas. it looks for strong stocks in trends that are setting up.
You can use the different variations depending on your style and you should look for group themes, strong growth, and VCP bases.
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