Minervini Trend Template — US Stocks in Stage 2 Uptrend with MA Alignment on NYSE & NASDAQ

Mark Minervini's Trend Template is a moving average alignment checklist that defines Stage 2 (advancing) stocks. Requirements: current price above both 50-day and 200-day moving averages, 50-day MA above 200-day MA, and 200-day MA itself trending upward. Minervini uses this as a prerequisite for every trade — only Stage 2 stocks are considered for entry.

SEPA (Specific Entry Point Analysis) is Minervini's complete stock selection and trading framework. It combines the Trend Template (Stage 2 prerequisite), a VCP (Volatility Contraction Pattern) base analysis, a specific pivot point entry, and predefined risk management rules. The Trend Template is the first step; SEPA is the complete system.

Stage 2 is the advancing phase of a stock's price cycle: price above rising moving averages, higher highs and higher lows, expanding trading range, and institutional accumulation driving volume on up days. Stage 1 is base building (flat). Stage 3 is topping (losing momentum). Stage 4 is decline. Minervini only buys Stage 2 stocks — the optimal window for the best risk-reward.

A golden cross occurs when the 50-day moving average crosses above the 200-day moving average. It signals that medium-term momentum has turned positive relative to long-term trend. The 50-day above 200-day configuration (maintained, not just crossed) is one of Minervini's Trend Template requirements — it confirms the medium-term trend supports the long-term uptrend.

A VCP is Minervini's specific base pattern that precedes optimal entry points. Characteristics: a series of price contractions with decreasing volatility range and decreasing volume, followed by a tight consolidation pivot. The VCP signals institutional accumulation happening quietly before a breakout. The Trend Template screen identifies Stage 2 candidates; the VCP identifies the precise entry point within those candidates.

Both identify stocks in uptrends. Darvas uses price relative to 52-week high and low only. Minervini's Trend Template specifically requires moving average alignment (50-day above 200-day, 200-day trending up), which is a more technically rigorous confirmation of Stage 2. A stock can be near its 52-week high (passing Darvas) but with declining moving averages — it would fail Minervini's template.

The 200-day MA direction determines the long-term trend. A 200-day MA that is flat or declining means the long-term trend is not yet established as upward, even if price is currently above the MA. A rising 200-day MA confirms the trend has been improving for months, not just days — a stronger and more reliable confirmation of genuine Stage 2 conditions.

Minervini prefers stocks with 25%+ quarterly earnings growth in recent quarters, above-average revenue growth, and expanding profit margins. He uses the CANSLIM framework's earnings criteria as a fundamental complement to the Trend Template. Strong earnings growth provides the fundamental justification for the technical Stage 2 pattern, making the setup higher conviction.

Most effective when the overall market (S&P 500, NASDAQ) is itself in Stage 2 — trending above its 200-day MA with the MA rising. In these conditions, the percentage of individual stocks passing the Trend Template is high and the hit rate on breakout trades is stronger. In bear markets, very few stocks pass, and those that do face constant headwinds from the broader market decline.

Minervini defines clear exit rules: stop-loss below the pivot point (typically 5-8% below entry), or sell if price closes below the 50-day MA on significant volume. A price decline below the 200-day MA is a signal to exit regardless. He accepts small, defined losses quickly and holds winners aggressively — the asymmetry between cutting losses short and letting profits run is central to his strategy.