Mark Minervini’s trend template criteria

Posted on: March 20th, 2023
By: Tadeo Martinez

I found this in his book Think & Trade Like a Champion

  1. Stock price is above both the 150-day (30-week) and the 200-day (40-week) moving average price limits.
  2. The 150-day moving average is above the 200-day moving average
  3. The 200-day moving average line is trending up for at least 1-month (preferably 4 to 5 months or longer)
  4. The 50-day (10-week moving average) is above both the 150-day and the 200-day moving averages.
  5. The current stock price is at least 25 percent above its 52-week low. (Many of the best selections will be 100 percent, 300 percent, or more above their 52-week low before they emerge from a healthy consolidation period and mount a large-scale advance.)
  6. The current stock price is within at least 25 percent of its 52-week high (the closer to a new high the better).
  7. The relative strength (RS) ranking (as reported in Investor’s Business Daily) is no less than 70, but preferably in the 90s, which will generally be the case with the better selections. (Note: The RS line in should not be in a strong downtrend. I like to see the RS line in an uptrend for at least 6 weeks, preferably 13 weeks or more.)
  8. Current price is trading above the 50-day moving average as the stock is coming out of a base.

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