Mark Minervini, a legendary stock trader, developed the Trend Template, a tool designed to identify stocks with strong upward trends. This system uses specific technical criteria to screen for high-potential stocks, focusing on price action, moving averages, and relative strength. Here’s how it works:
Key Criteria of the Trend Template:
- Price & Moving Averages:
- Stock price must be above the 150-day and 200-day moving averages.
- The 200-day moving average must trend upward for at least one month.
- The 50-day moving average should be above the 150-day and 200-day moving averages.
- Price Positioning:
- Stock price must be at least 30% above its 52-week low.
- Stock price must be within 25% of its 52-week high.
- Relative Strength:
- A minimum relative strength score of 70, with 80+ preferred for stronger candidates.
- Volume Trends:
- Rising prices paired with increasing volume indicate institutional buying.
Tools for Screening:
- Platforms like ChartMill, TradingView, and Deepvue offer preconfigured or customizable filters for the Trend Template.
- High-performance trading computers ensure smooth real-time analysis for advanced traders.
By adhering to these guidelines, traders can systematically find stocks in a Stage 2 uptrend – the phase where stocks tend to experience sustained growth. This approach eliminates guesswork and focuses on stocks with strong technical health and momentum.
Core Criteria of the Trend Template
Technical Indicators in the Trend Template
The Trend Template relies on specific moving average conditions to confirm sustained uptrends. It’s not just about trading above the 150-day and 200-day moving averages; those averages must also show an upward trend. On top of that, the 50-day moving average needs to stay above both, reinforcing momentum across different timeframes.
This alignment of moving averages is a critical factor. The 50-day moving average sitting above the 150-day and 200-day averages signals a strong, sustained uptrend. These technical benchmarks lay the groundwork for further analysis of relative strength and volume.
Relative Strength and Volume Analysis
Relative strength plays a key role in the Trend Template. Stocks need a relative strength score above 70, though ratings in the 80s or 90s are preferred, as these indicate strong market leadership and momentum.
Volume analysis provides another layer of confirmation by highlighting institutional activity. Rising prices paired with increasing volume suggest institutional accumulation, which helps differentiate genuine breakouts from false signals. Additionally, focusing on stocks within leading sectors can enhance the effectiveness of this screening process.
Together, relative strength and volume analysis confirm the institutional support behind a stock, complementing the technical price criteria.
Price Position and Trend Strength
Price positioning ensures that stocks not only have significant upside potential but also maintain strong momentum. The Trend Template checks two key metrics: the stock’s current price must be at least 30% above its 52-week low, indicating a solid recovery trend, and within 25% of its 52-week high, reflecting strong momentum and leadership.
Take Kyndryl Holdings Inc. as an example. On January 9, 2025, the stock was trading at $34.83. Its 150-day moving average stood at $26.53, and the 200-day moving average was $25.52 – both trending upward. The 50-day moving average, positioned at $30.12, was above the longer-term averages. The stock was also trading 78% above its 52-week low of $19.23 and just 4.5% below its 52-week high of $36.43, with a relative strength above 94[1]. By requiring all of these conditions to align, the Trend Template narrows its focus to stocks with the highest potential for sustained performance.
How to Screen Stocks Using the Trend Template
Setting Up Your Screening Criteria
To begin, configure your stock screener to match the Trend Template criteria. If you’re using ChartMill, you’re in luck – it provides a ready-made "Minervini Trend Template" Trading Idea that applies all the necessary filters with just one click [1].
If you prefer to set things up manually, you’ll need to adjust nine key criteria. Start with the moving averages: ensure the stock’s current price is above both the 150-day and 200-day moving averages, and verify that these averages are trending upward. Additionally, the 50-day moving average should be positioned above both the 150-day and 200-day averages [1].
Next, focus on price positioning. Set your screener to identify stocks trading at least 30% above their 52-week low and within 25% of their 52-week high. Lastly, include a filter for relative strength, requiring a score above 70. For the best opportunities, aim for stocks with scores in the 80s or 90s [1].
If you use TradingView, the Pine Screener can help you find stocks that meet these criteria. Once you’ve identified potential candidates, save them to a watchlist for continuous monitoring [3]. Deepvue users can also take advantage of its Preconfigured Trend Template under Presets > Top Traders > Minervini [2].
Once your screener is ready, the next step is analyzing the results to zero in on the most promising market leaders.
Reading Screening Results
With your screener configured, it’s time to dive into the results. Start by prioritizing stocks with relative strength scores of 85 or higher – these are often the strongest performers [1]. It’s worth noting that 99% of top-performing stocks historically traded above their 200-day simple moving average before making significant moves. Additionally, 96% of these stocks were above their 50-day moving average during their advances [3].
Sector strength is another critical factor. Stocks within high-performing sectors are more likely to sustain upward momentum. Look for stocks showing tight price consolidations or bullish patterns. Avoid those with erratic price movements, as they often indicate instability [1].
Volume trends can also provide valuable clues. Rising volume alongside increasing prices suggests institutional buying, which can help confirm a stock’s breakout potential and distinguish genuine opportunities from false signals.
Automating the Screening Process
To make your screening process more efficient, consider automating it. Set up alerts on your screener to notify you whenever a stock meets the Trend Template criteria [1].
If you’re using ChartMill, you can customize the automated filters to align with your trading style while staying true to the core Trend Template guidelines. This flexibility is especially useful if you want to focus on specific market capitalizations or exclude certain sectors [1].
Keep your watchlist manageable by focusing on a smaller number of stocks that consistently meet the criteria, rather than overwhelming yourself with hundreds of options. This approach allows you to conduct a more detailed analysis of each candidate.
For the best results, schedule automated scans after the market closes or before it opens. This ensures you’re working with up-to-date data and have enough time to review potential opportunities before making any trades. Many platforms also offer email or mobile alerts, so you can stay informed even when you’re away from your trading desk.
Lastly, if you’re running real-time automated scans across thousands of stocks, having a reliable and fast trading computer is crucial to keep everything running smoothly.
Mark Minervini Screens in ChartMill – Part I – Trend Template and Fundamental Filters
Tools and Hardware for Stock Screening
To effectively use the Trend Template for stock screening, you’ll need the right combination of specialized software and reliable, high-performance hardware.
Software for the Trend Template
Several platforms integrate Minervini’s Trend Template, making it easier to screen for potential stock opportunities:
- ChartMill: Offers a one-click pre-built Trading Idea based on the Trend Template.
- TradingView: Features the Pine Screener, allowing users to create custom filters tailored to the Trend Template.
- Deepvue: Includes a preconfigured Trend Template under Presets > Top Traders > Minervini.
- MarketSmith India: Supports Minervini’s criteria but requires more manual setup.
For a more advanced and comprehensive tool, Minervini Markets 360 provides a dedicated stock screener, AI-enabled analysis, real-time charting, and portfolio management tools.
In 2024, platforms like these successfully identified standout stocks such as Applovin Corporation (APP) and Nvidia Corp (NVDA). Both met the Trend Template’s key criteria: trading above important moving averages, rising 200-day SMAs, and achieving high relative strength scores.
While software simplifies the screening process, having the right hardware is equally critical for handling the data-heavy demands of real-time market analysis.
High-Performance Trading Computers
Screening stocks and analyzing real-time data simultaneously requires a powerful computer setup. DayTradingComputers offers purpose-built systems designed for traders implementing strategies like the Trend Template:
- Lite Model ($3,569): Features an NVIDIA GeForce RTX 3070 Ti SUPER graphics card, 32GB DDR5 RAM, AMD Ryzen 5600X processor, and a 1TB NVMe SSD. This setup is great for most screening tasks and supports up to two monitors for chart analysis.
- Pro Model ($4,569): Equipped with an NVIDIA GeForce RTX 4070 Ti SUPER graphics card, 64GB DDR5 RAM, AMD Ryzen 7900X processor, and a 2TB NVMe SSD. Perfect for screening larger stock universes across multiple platforms.
- Ultra Model ($5,569): Includes an NVIDIA GeForce RTX 4090 SUPER graphics card, 128GB DDR5 RAM, AMD Ryzen 9800X3D processor, and a 4TB NVMe SSD. Built to handle complex screens of thousands of stocks without lag.
These configurations cater to different levels of trading activity, ensuring smooth performance whether you’re analyzing a handful of stocks or thousands.
System Requirements for Efficient Screening
To screen stocks efficiently using the Trend Template, your hardware should be optimized for real-time data processing. Here’s what to prioritize:
- Processor: Choose an Intel Core i7/i9 or AMD Ryzen 7/9 for robust performance.
- Memory: A minimum of 32GB DDR5 RAM is essential, though 64GB or 128GB may be necessary for analyzing larger stock universes.
- Storage: SSDs are a must for speed. A 1TB NVMe SSD is sufficient for most traders, but 2TB or 4TB options are better for storing extensive backtesting data.
- Graphics Card: Ensure it supports multi-monitor setups and high-resolution displays for detailed chart analysis.
- Network Connection: A wired Ethernet connection minimizes latency and ensures uninterrupted data flow.
- Power Backup: An Uninterruptible Power Supply (UPS) protects against power outages, keeping your system running during critical moments.
For traders, reliability often outweighs cutting-edge specs. Opt for proven, stable components to ensure your system performs consistently during high-stakes market analysis and trade execution.
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Practical Application and Best Practices
Adding the Trend Template to Daily Trading
To effectively use the Trend Template, start by running your screener before the market opens. This will help you compile a list of stocks that meet the established criteria. Set up alerts to notify you when stocks align with the Trend Template, so you’re ready to act when they break above key moving averages.
Keep an eye on sector rotation to spot high-performing sectors. If multiple stocks from the same sector meet the Trend Template requirements, it could signal a sector-wide uptrend worth exploring. Focus on stocks with strong relative strength scores, as these are often the market leaders.
Volume is another critical factor. Rising volume can confirm price advances, so prioritize stocks that show this trend. However, be cautious of stocks with erratic price movements or declining volume, even if they check other technical boxes.
Rather than overwhelming yourself with hundreds of stocks, stick to a watchlist of 20-30. This focused approach allows you to analyze price action and volume patterns more closely, helping you make better-informed decisions about entries and exits.
Once you’ve mastered the basics, consider tweaking the template to align it with your trading style.
Customizing the Template for Your Strategy
After setting up your initial screen, refine the Trend Template to suit your unique trading approach. For short-term traders, you might want to tighten the criteria by focusing on stocks near their 52-week highs, prioritizing those with the strongest recent momentum.
If you’re a swing trader, think about combining the Trend Template with the Volatility Contraction Pattern (VCP). The VCP highlights periods of reduced volatility within a Stage 2 uptrend, helping you identify better entry points and avoid buying stocks at overextended levels.
Adjust the relative strength (RS) thresholds based on market conditions. During strong bull markets, aim for stocks with RS scores of 85 or higher. In weaker or more volatile markets, lowering the threshold to 70 can help you find stocks outperforming the broader market.
Position sizing is another key consideration. Match your position sizes to your risk tolerance and the volatility of the stocks you’re trading. For high-volatility stocks, smaller positions may be prudent, while more stable, large-cap stocks might allow for larger allocations. Set stop-loss levels between 0.5% and 2.5%, depending on the stock’s volatility and your overall risk strategy.
You can also adjust moving average parameters to fit your trading timeframe. While the standard Trend Template relies on the 50-day, 150-day, and 200-day moving averages, shorter-term traders might benefit from tweaking these settings to better capture quicker trends.
Testing and Tracking Performance
Once you’ve integrated the Trend Template into your trading routine, it’s important to track its performance systematically. Use a trading journal to record key metrics like success rate, average profit and loss per trade, largest wins and losses, and average holding times for the stocks you screen.
Experiment with different combinations of relative strength thresholds, price positioning, and moving average settings using historical data. This will help you identify what works best for your specific trading style.
Keep an eye on how long stocks remain on your watchlist and evaluate their performance after they no longer meet the criteria. Stocks that quickly drop below the 150-day moving average or see their relative strength fall below 70 may signal a weakening trend that requires your attention.
Review your results weekly to identify the top-performing stocks and look for common traits among winners and losers. This reflection can help you refine your screening process and uncover patterns you might miss during day-to-day trading.
Pay close attention to how volume interacts with price performance. Stocks that show consistent volume increases during price rallies often continue to perform well, while those with declining volume during rallies may struggle.
Finally, before applying any new variations of the Trend Template with real money, test them in a paper trading environment. This allows you to experiment with different criteria and strategies without risking capital, giving you the confidence to implement your customized approach effectively.
Conclusion: Using the Trend Template for Stock Screening
Mark Minervini’s Trend Template offers a practical set of guidelines for spotting stocks with strong potential. By applying proven technical criteria, traders can refine their stock selection process and improve their chances of success.
"If you go back and look at the biggest winning stocks of the last 100 years, 99% of them made their biggest move above the 200-day with the 200-day in an uptrend. So would you like to be in the 1% club or the 99% club?" – Mark Minervini [4]
The core advantage of the Trend Template is its emphasis on confirmed uptrends. It targets stocks that are already showing strength, helping traders focus on market leaders. When adapted to fit individual trading styles and paired with consistent performance reviews, this approach becomes a dependable tool for identifying opportunities. Its focus on trend confirmation aligns well with the need for fast and efficient analysis in today’s trading environment.
In a market where high-frequency trading accounts for nearly 40% of equity volume, speed and accuracy are critical. Traders need tools that can process screening criteria, execute trades quickly, and handle real-time data without missing a beat.
This is where high-performance trading computers come into play. Systems like those from DayTradingComputers are built to meet these demands. Whether it’s the Lite model with 32GB DDR5 RAM or the Ultra model boasting 128GB DDR5 RAM and 4TB NVMe SSD storage, these configurations provide the power needed to stay ahead in the fast-paced world of trading.
FAQs
What is Mark Minervini’s Trend Template, and how does it help identify high-growth stocks?
Mark Minervini’s Trend Template serves as an effective method for spotting stocks with strong growth prospects. It emphasizes key technical indicators like stocks trading above their 200-day moving average (which should also show an upward trend), steady price increases, and strong relative strength compared to the overall market.
This approach helps traders identify stocks in a Stage 2 uptrend – a phase often linked to notable growth potential. By focusing on these criteria, the template filters out underperforming stocks and brings attention to those with promising growth opportunities, making it a valuable tool for refining stock selection and enhancing trading results.
What key technical indicators does Mark Minervini use in his Trend Template, and why do they matter?
Mark Minervini’s Trend Template
Mark Minervini’s Trend Template zeroes in on a few key moving averages: the 50-day (10-week), 150-day, and 200-day moving averages. These indicators are essential tools for spotting robust stock trends.
For a stock to meet the template’s criteria, its price should be trading above these moving averages, and those averages themselves should be moving upward. This combination points to a strong and steady uptrend, providing traders with greater confidence in the stock’s momentum. By sticking to these guidelines, you can sift through weaker stocks and focus on those with the greatest potential for consistent growth.
How can traders tailor Mark Minervini’s Trend Template to fit their trading style?
Traders can tweak Mark Minervini’s Trend Template to better align with their specific trading styles, goals, and risk levels. For example, short-term traders might lean on shorter moving averages or quicker signals from price movements, while long-term investors could focus more on trends tied to the 200-day moving average.
The template can also be adjusted to reflect different market environments. In a strong bull market, traders might zero in on breakout patterns, aiming to capitalize on upward momentum. On the other hand, during volatile or uncertain markets, the focus might shift toward risk management and applying stricter criteria. By tailoring the template to fit both personal strategies and market conditions, traders can ensure it remains a practical tool in their decision-making process.
