Mark Minervini's Trend Template Explained (Applied to Indian Stocks)
The 8 conditions of Mark Minervini's Trend Template explained in simple terms, and how traders apply them to NSE stocks.
Mark Minervini is a US trader and author of Trade Like a Stock Market Wizard. He describes a "Trend Template": a set of conditions a stock should meet before he considers buying it. Its purpose is simple: focus only on stocks that are already in strong uptrends.
The 8 conditions
- The price is above both the 150-day and 200-day moving averages.
- The 150-day moving average is above the 200-day moving average.
- The 200-day moving average has been trending up for at least one month.
- The 50-day moving average is above both the 150-day and 200-day moving averages.
- The price is above the 50-day moving average.
- The price is at least 30% above its 52-week low.
- The price is within 25% of its 52-week high.
- The stock's relative strength ranking is 70 or higher, meaning it has outperformed most other stocks.
What it really checks
Together these conditions say: the stock is in a confirmed uptrend, the trend is getting stronger, it has already moved well off its lows, it is near its highs rather than far below them, and it is outperforming the market.
How it connects to Stage Analysis
A stock that passes the Trend Template is usually in what Stan Weinstein would call Stage 2, the advancing stage. Read what is Stage Analysis.
Applying it to Indian stocks
Traders apply these filters to NSE stocks using screeners. In India, liquidity matters: very small, thinly traded stocks can pass the filters but be hard to exit. Many traders limit their scan to a broad index such as the NIFTY 500.
What the Trend Template is not
It is a filter, not a buy signal. A stock can pass every condition and still be a poor entry if it is extended far above its base. Timing comes from setups such as the VCP, and risk comes from position sizing.
We teach trend filters, setups and risk together in our Intermediate and Advanced courses, with the CIMS Screener to speed up the scan.
Education only. Not investment advice. CIMS is not affiliated with Mark Minervini.
Frequently asked questions
What is the Trend Template?
It is a checklist of moving average, 52-week range and relative strength conditions described by Mark Minervini to identify stocks in strong uptrends.
Does the Trend Template work in India?
The ideas are general to trending markets and many Indian traders apply them to NSE stocks, but no checklist guarantees profits. It is a filter, not a buy signal.