Minervini SEPA Trend Template Explained: All 8 Criteria

Mark Minervini's SEPA (Specific Entry Point Analysis) trend template is a set of eight criteria that identify stocks in a confirmed Stage 2 uptrend — the stage where the largest price gains historically occur.

SEPA stands for Specific Entry Point Analysis. For a broader look at how Minervini's stages work, see our Minervini stage analysis guide. The trend template is the first filter in that process: a set of eight quantitative criteria that every stock must pass before Minervini considers it a potential buy. If a stock fails even one criterion, it is disqualified. No exceptions. No "close enough."

This article breaks down each of the eight criteria, explains the logic behind them, and shows how the scanner automates the entire check across roughly 1,900 US-listed stocks every day.

The 8 trend template criteria

1. The current stock price is above both the 150-day (30-week) and 200-day (40-week) moving averages.

   This is the most basic confirmation of an uptrend. If the price is below these long-term averages, the stock is either in a downtrend or stuck in a base that has not yet resolved to the upside. The 150-day and 200-day averages act as a rough proxy for institutional cost basis over the past six to twelve months. When the stock trades above both, most holders are in profit, which reduces overhead supply (the tendency of underwater holders to sell into strength to get back to even).

2. The 150-day moving average is above the 200-day moving average.

   This criterion ensures the trend is not just technically above both lines, but that the intermediate-term trend (150-day) is stronger than the long-term trend (200-day). When the 150-day crosses above the 200-day, it is a structural shift in the stock's momentum. It means that over the last six months, the stock has consistently traded at higher prices than it did in the prior twelve months.

3. The 200-day moving average is trending up for at least one month (preferably four to five months or longer).

   A rising 200-day average confirms that the uptrend is not a recent spike but a sustained directional move. The one-month minimum is the floor; Minervini prefers stocks where the 200-day has been rising for four or five months, because that indicates a mature Stage 2 uptrend with institutional accumulation behind it. A stock where the 200-day is flat or still declining — even if the price has popped above it — has not proven itself yet.

4. The current stock price is at least 30% above its 52-week low.

   This eliminates stocks that are near the bottom of their range. A stock sitting only 10% above its 52-week low has not demonstrated the buying power needed to suggest a meaningful trend change. The 30% threshold ensures the stock has already attracted enough demand to move decisively away from its low point. It filters out value traps and stocks in extended Stage 1 bases that have not yet broken out.

5. The current stock price is within 25% of its 52-week high.

   While criterion 4 ensures the stock is well off its lows, this criterion ensures it is near its highs. A stock that is 40% below its 52-week high may be in a downtrend or a deep correction, even if it is technically above its moving averages due to the averaging effect. The 25% window keeps the focus on stocks that are within striking distance of new highs, which is where breakouts occur.

6. The relative strength ranking is above 70 (preferably above 80).

   Relative strength measures the stock's price performance against the rest of the market. A ranking of 70 means the stock is outperforming 70% of all stocks. This is not the RSI oscillator (relative strength index), which measures overbought/oversold conditions within a single stock. This is a comparative ranking. Minervini wants stocks in the top 30% of the market because historical studies show that big winners almost always rank in the top quartile of relative strength before their major advances begin.

7. The current price is trading above the 50-day (10-week) moving average.

   The 50-day average represents near-term trend. A stock below its 50-day average is in a short-term downtrend, even if the longer-term averages are bullish. For a breakout entry, you want all timeframes aligned: short-term, intermediate, and long-term all pointing up. A stock below its 50-day may be setting up a pullback entry, but it has not yet confirmed that the pullback is over.

8. The 50-day moving average is above both the 150-day and 200-day moving averages.

   This is the final confirmation of proper moving average alignment. When the averages are "stacked" — 50-day above 150-day above 200-day — every timeframe is in agreement. The stock is in an uptrend on the short, intermediate, and long-term charts simultaneously. This is the environment where breakouts have the highest probability of success.

What "Stage 2 uptrend" means

Minervini's framework borrows the concept of stock stages from Stan Weinstein's work. Every stock cycles through four stages:

• Stage 1 (Basing): The stock trades sideways after a decline. Volume is low, and the moving averages flatten out. There is no trend.
• Stage 2 (Advancing): The stock breaks out of the base, the moving averages begin to rise and stack properly, and volume expands. This is where the money is made.
• Stage 3 (Topping): The stock begins trading erratically. It swings above and below its moving averages. Volume surges on down days. The moving averages flatten and begin to converge.
• Stage 4 (Declining): The stock breaks below its major moving averages, the averages invert (50-day below 150-day below 200-day), and the stock trends lower.

The trend template is designed to identify stocks that are firmly in Stage 2. All eight criteria together act as a Stage 2 confirmation system. When a stock fails even one criterion, it is either not yet in Stage 2, or it is transitioning out of it. Either way, it is not a Minervini-style buy candidate.

How each stage maps to the trend template

Understanding why the trend template works requires seeing which criteria each failing stage violates.

A Stage 1 stock typically fails criteria 1, 2, 3, and 8. The price is hovering around its flattening moving averages rather than trading above them. The 150-day average is not yet above the 200-day because the stock has not sustained enough upward momentum. The 200-day is flat or still declining. And the stock is usually far from its 52-week high because it has been trading sideways or drifting lower. A stock transitioning from Stage 1 to Stage 2 may begin passing criteria one at a time -- first the price climbs above the 200-day, then the 50-day crosses above the 150-day. But until all eight are satisfied simultaneously, the transition is not confirmed.

A Stage 3 stock may still pass several criteria because it was recently in Stage 2. The moving averages are still stacked, and the price may be near the 52-week high. But the telltale sign is criterion 7: the price begins to slice below the 50-day average with increasing frequency. The stock swings above and below the 50-day in a widening, erratic pattern. Volume surges on down days. The trend template catches this transition early because the requirement that price be above the 50-day average filters out stocks that are beginning to distribute.

A Stage 4 stock fails almost every criterion. The price is below all major moving averages. The averages are inverted (50-day below 150-day below 200-day). The stock is far from its 52-week high. The 200-day is declining. Relative strength is collapsing. The trend template eliminates Stage 4 stocks immediately and completely. There is no scenario where a stock in a confirmed downtrend passes all eight checks.

The power of the 200-day rising requirement

Criterion 3 -- the 200-day moving average must be trending up for at least one month -- is often overlooked, but it is one of the most powerful filters. A stock can pop above its moving averages on a single earnings gap and temporarily satisfy most criteria. But a rising 200-day average cannot be faked by a single day's move. It requires sustained buying over many months. This single criterion eliminates stocks that have merely spiked above their averages on a news event without establishing a genuine uptrend. Minervini's preference for four to five months of rising 200-day movement further narrows the field to stocks with deep institutional commitment behind them.

Real-world examples of the template at work

Consider a hypothetical stock trading at $85 that has been advancing steadily for six months. Its 50-day average is at $78, its 150-day at $68, and its 200-day at $60 and rising for five months. The 52-week low is $40, and the 52-week high is $90. The stock sits 112% above its 52-week low (passes criterion 4), within 6% of its 52-week high (passes criterion 5), with all averages properly stacked and rising. Its relative strength ranks in the 88th percentile. This stock passes every criterion cleanly. It is a textbook Stage 2 candidate, ready for pattern analysis.

Now consider another stock at $55. Its 50-day is at $58, 150-day at $52, and 200-day at $54 -- the 200-day is above the 150-day. The stock fails criteria 2 (150-day not above 200-day), 7 (price below the 50-day), and 8 (50-day not above both longer averages). Despite the stock being above the 200-day and near its 52-week high, the moving average disorder reveals that the trend is not confirmed. This stock is likely in late Stage 1 or transitioning, and the template correctly excludes it.

The volatility contraction pattern

Passing the trend template gets a stock onto the watchlist, but it does not trigger a buy. The entry signal comes from the volatility contraction pattern (VCP), which Minervini considers one of the most powerful setups in momentum trading.

A VCP forms when a stock in a confirmed Stage 2 uptrend pulls back, recovers, pulls back again with less magnitude, recovers again, and repeats this cycle with each successive pullback being shallower and tighter than the last. Visually, the pattern looks like a coiled spring.

For example, a stock might pull back 25% from its high, rally back, then pull back 15%, rally back, then pull back 8%, then 4%. Each contraction represents sellers getting exhausted. By the time the pullback is only 4%, there is almost no supply left, and a relatively small amount of buying pressure can push the stock to new highs.

The ideal VCP has three to five contractions (sometimes called "T" counts), with volume declining during each pullback. The breakout from the final contraction — the point where the stock pushes above the tightest portion of the pattern — is the buy point. The stop goes just below the low of the final contraction, giving a tight, defined risk.

The trend template ensures you are only looking for VCPs in stocks that are in the right trend environment. Without the template, you might identify what looks like a VCP in a stock that is actually in Stage 3 or Stage 4, which has a much lower probability of success.

How the scanner automates all 8 checks

Checking eight criteria manually across 1,900 stocks is impractical. It requires pulling up each stock's chart, calculating five different moving averages, comparing the current price to the 52-week range, and computing relative strength rankings. Even a dedicated trader would spend hours and still miss stocks.

SwingTradeScanner runs all eight trend template checks automatically every trading day. The process works as follows:

• Data ingestion: End-of-day price and volume data for approximately 1,900 US-listed stocks is processed after the market close.
• Moving average calculation: The 50-day, 150-day, and 200-day simple moving averages are computed for every stock.
• Trend analysis: The system checks whether the 200-day average has been rising for at least 20 trading days (approximately one calendar month) and whether the moving averages are properly stacked.
• Range analysis: The current price is compared to the 52-week high and low to verify the 30% above low and within 25% of high criteria.
• Relative strength ranking: Every stock is ranked by its price performance over 6 and 12 months, weighted toward more recent performance. The ranking is displayed as a percentile from 0 to 99.
• Result filtering: Only stocks passing all eight criteria appear in the SEPA scan results. Each result shows the stock's current values for every criterion, so you can see exactly how it qualifies.

The result is a daily list of stocks that meet every requirement of the Minervini trend template, updated and ready before the next trading session. Unlike manually checking charts in Finviz or building custom scans in TradingView, the entire eight-criterion check is automated and combined with VCP pattern detection, composite scoring from 0 to 100, and market breadth regime analysis -- all in one view. No other tool runs the complete SEPA trend template alongside VCP grading, SEC filing detection, and cross-methodology scanning (CANSLIM, episodic pivots, momentum breakouts) at any price, let alone at $20 per month.

From there, your job is to review the charts for the highest-graded setups and determine which ones offer the best risk/reward at that moment. The scanner does the hours of filtering; you spend minutes on decision-making.

You can explore the live SEPA scan at /scans/sepa.

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