Technical & Price Action
Minervini Trend Template (Stage 2) is a Technical & Price Action screen. It checks every NSE-listed stock against 5 conditions computed from nightly data, after excluding heavily pledged promoters and very small market caps. This page explains the rule, each figure and its source. It lists no stocks and is not advice.
Mark Minervini's Trend Template defines the precise conditions for a stock to be in Stage 2 — the institutional accumulation phase where the best risk-reward setups occur. Stage 2 begins after a stock has built a price base (Stage 1 consolidation) and is characterised by the stock trading above all its major moving averages, with those averages properly stacked in bullish order. The eight criteria collectively ensure: (1) the long-term trend is up, (2) all time-frames of moving averages are aligned, (3) the stock is not so extended below its lows that all the easy money has been made, and (4) the stock is not so extended above its prior high that downside risk is elevated. Only stocks meeting all eight simultaneously qualify — which in practice creates a highly selective list.
A stock must satisfy every condition below. Conditions are grouped under the pillar they test.
Stage 2 Uptrend Configuration
Hard excludes
Ranked by Close Price, highest first.
Price vs 200-Day MA (%)
Percentage by which the current price exceeds the 200-day moving average. Must be positive — price above 200MA is the most basic Stage 2 requirement.
High is better
150-Day MA vs 200-Day MA (%)
The percentage by which the 150-day moving average exceeds the 200-day moving average. Must be positive — the 150MA must be above the 200MA.
This ensures the intermediate trend (150-day) is also bullish relative to the long-term trend (200-day). If the 150MA is below the 200MA, the intermediate trend has not yet confirmed the Stage 2 thesis.
High is better
Price Premium vs 52-Week Low (%)
The percentage by which the current price exceeds the 52-week low. Minervini requires this to be at least 30% — meaning the stock has recovered at least 30% from its yearly low.
This ensures the stock has already shown upward momentum from its base. A stock at 5% above its 52-week low has barely recovered — not yet a confirmed Stage 2. At 30%+ above the low, a meaningful base has been built.
High is better
Price Discount vs 52-Week High (%)
The percentage by which the current price is below the 52-week high. Minervini requires this to be within 25% — meaning the stock is no more than 25% below its yearly high.
Low is better
Type hypothetical values to see which conditions they satisfy. These are not real stocks and nothing here is stored.
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In the past data we checked, the stocks this screen picked did better than the ones it left out, but a cost-aware, out-of-sample portfolio built from them did not hold up well against our deflated-Sharpe bar.
AI-generated plain-language explanation
In the past data we checked, the stocks this screen picked did better than the ones it left out, but a portfolio built from them did not clear our test after trading costs. Each month across the whole period we have data for, we checked whether the stocks this screen picked did better, over the following month (21 trading days), than the stocks it didn't pick. We score that from -1 (the picks always did worse) to +1 (always did better); 0 means no pattern. This screen scored 0.0492. As a measurement, the score is small, but clearly above zero. If the screen had no real edge, a score at least this far from zero would show up less than 1 in 1,000 by luck alone. We also tested a portfolio of the screen's picks over 64 months, using only what was known at the time and after estimated trading costs: it earned 0.40 for each unit of ups and downs, per year. Because this screen has been tested 2 times, we mark down results that could be flukes. After that, the chance that it truly beats simply holding the index is about 32 in 100. A pattern can exist and still not be worth trading after costs. This is a record of the past, not a prediction. A screen is still a way to narrow a list by your own rules, whatever the measurement says.
This content has been generated with the assistance of artificial intelligence tools by FINOME TECHNOLOGIES PVT LTD. It is for educational purposes only and does not constitute investment advice, a research report, or a recommendation under SEBI (Research Analysts) Regulations, 2014 or SEBI (Investment Advisers) Regulations, 2013. Not investment advice. Issued in compliance with SEBI circular SEBI/HO/MIRSD/MIRSD-SEC-5/P/CIR/2024/149.
In the past data we checked, the stocks this screen picked did better than the ones it left out, but a portfolio built from them did not clear our test after trading costs. Each month, across the whole period we have data for, we checked whether the stocks this screen picked did better, over the following month (21 trading days), than the stocks it didn't pick. We score that from -1 (the picks always did worse) to +1 (always did better); 0 means no pattern. This screen scored 0.0492. As a measurement, the score is small, but clearly above zero. If the screen had no real edge, a score at least this far from zero would show up less than 1 in 1,000 by luck alone.
We also tested a portfolio of the screen's picks over 64 months, using only what was known at the time and after estimated trading costs: it earned 0.40 for each unit of ups and downs, per year. Because this screen has been tested 2 times, we mark down results that could be flukes. After that, the chance that it truly beats simply holding the index is 0.324, about 32 in 100.
A pattern can exist and still not be worth trading after costs. This is a record of the past, not a prediction. A screen is still a way to narrow a list by your own rules, whatever the measurement says.
This is a historical, statistical measurement produced by FINOME TECHNOLOGIES PVT LTD's research harness on past data. It is not a prediction, and past results do not indicate future results. The universe is today's Nifty 500 constituents, so the sample is affected by survivorship bias. It describes how a screen's selections behaved in the past and does not constitute investment advice or a recommendation.
Rule version 1.0.0