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    Mark Minervini Stage 2 Uptrend and Trend Template

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    The document discusses how to identify when a stock is in Stage 2 of an uptrend using a Trend Template. It states that 99% of superperforming stocks traded above their 200-day moving average and 96% above their 50-day moving average before large gains. It then lists the 8 criteria a stock must meet to be considered in a confirmed Stage 2 uptrend according to the Trend Template, including trading above the 150-day and 200-day moving averages and the 50-day moving average trending up for at least 1 month.

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    Mark Minervini Stage 2 Uptrend and Trend Template

    Uploaded by

    L
    2K views1 page
    The document discusses how to identify when a stock is in Stage 2 of an uptrend using a Trend Template. It states that 99% of superperforming stocks traded above their 200-day moving average and 96% above their 50-day moving average before large gains. It then lists the 8 criteria a stock must meet to be considered in a confirmed Stage 2 uptrend according to the Trend Template, including trading above the 150-day and 200-day moving averages and the 50-day moving average trending up for at least 1 month.

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    The document discusses how to identify when a stock is in Stage 2 of an uptrend using a Trend Template. It states that 99% of superperforming stocks traded above their 200-day moving average and 96% above their 50-day moving average before large gains. It then lists the 8 criteria a stock must meet to be considered in a confirmed Stage 2 uptrend according to the Trend Template, including trading above the 150-day and 200-day moving averages and the 50-day moving average trending up for at least 1 month.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    2K views1 page

    Mark Minervini Stage 2 Uptrend and Trend Template

    Uploaded by

    L
    The document discusses how to identify when a stock is in Stage 2 of an uptrend using a Trend Template. It states that 99% of superperforming stocks traded above their 200-day moving average and 96% above their 50-day moving average before large gains. It then lists the 8 criteria a stock must meet to be considered in a confirmed Stage 2 uptrend according to the Trend Template, including trading above the 150-day and 200-day moving averages and the 50-day moving average trending up for at least 1 month.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    CHAPTER 5 TRADING WITH THE TREND 79

    How to Pinpoint Stage 2


    As I’ve stated, history clearly shows that virtually every superperformance
    stock was in a definite uptrend before experiencing its big advances. In fact,
    99 percent of superperformance stocks traded above their 200-day moving
    averages before their huge advance, and 96 percent traded above their 50-day
    moving averages.
    I apply the Trend Template criteria (see below) to every single stock I’m
    considering. The Trend Template is a qualifier. If a stock doesn’t meet the
    Trend Template criteria, I don’t consider it. Even if the fundamentals are
    compelling, the stock must be in a long-term uptrend—as defined by the
    Trend Template—for me to consider it as a candidate. Without identifying a
    stock’s trend, investors are at risk of going long when a stock is in a danger-
    ous downtrend, going short during an explosive uptrend, or tying up capital
    in a stock lost in a sideways neglect phase. It’s important to point out that a
    stock must meet all eight of the Trend Template criteria to be considered in
    a confirmed stage 2 uptrend.

    Trend Template
    1. The current stock price is above both the 150-day (30-week) and the 200-day
    (40-week) moving average price lines.
    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
    4–5 months minimum in most cases).
    4. The 50-day (10-week) moving average is above both the 150-day and 200-day
    moving averages.
    5. The current stock price is trading above the 50-day moving average.
    6. The current stock price is at least 30 percent above its 52-week low. (Many of
    the best selections will be 100 percent, 300 percent, or greater above their
    52-week low before they emerge from a solid consolidation period and mount
    a large scale advance.)
    7. The current stock price is within at least 25 percent of its 52-week high (the
    closer to a new high the better).
    8. The relative strength ranking (as reported in Investor’s Business Daily) is no
    less than 70, and preferably in the 80s or 90s, which will generally be the case
    with the better selections.

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