Mark Minervini, a two-time U.S. Investing Championship winner, popularized the stock-selection checklist known as the Trend Template. Its eight conditions have become a standard filter in trend-following trading. Only a stock that passes all eight is considered to be in what Stan Weinstein called a Stage 2 uptrend. The 8/8 shown in Trend Screener means exactly that — all eight conditions are satisfied. Let’s take them apart one by one.
Five conditions about moving-average alignment
Five of the eight conditions concern the arrangement and direction of the 50-, 150-, and 200-day moving averages. The goal is singular: to confirm that the short-, medium-, and long-term trends all point up.
- Price above the 150-day & 200-day MAPrice sits above its medium- and long-term average cost, so most recent buyers are in profit and selling pressure is light.
- 150-day MA above the 200-day MAThe medium-term trend is stronger than the long-term one — recent momentum is steeper than the past.
- 200-day MA trending up for ≥ 1 monthThe long-term trend itself must rise. A still-falling 200-day line means the stock is basing, not advancing.
- 50-day MA above the 150-day & 200-day MAThe short line on top — a proper "stacked" alignment (50 > 150 > 200) is the healthiest structure.
- Price above the 50-day MABuyers hold the edge in the short term too. A drop below the 50-day line is the first sign the near-term trend is wobbling.
In one line: price > 50-day > 150-day > 200-day, with the 200-day rising. For a deeper look at alignment and slope, see the moving-averages guide.
Two conditions about price location
The next two check where price sits relative to its 52-week high and low. A live trend should be well clear of the lows and near the highs.
- Price ≥ 30% above the 52-week lowFilters out stocks that have barely bounced off the bottom. Being 30%+ off the low proves buying has already stepped in.
- Price within 25% of the 52-week highA real leader trades near new highs. A stock down 30–50% from its high carries a thick wall of trapped supply overhead.
The final condition — relative strength
- RS Rating ≥ 70The stock must be strong relative to the market. However clean the moving-average alignment, a name that lags while the market rises is not a leader.
What relative strength is and how it’s computed is covered in reading market leaders with RS. Minervini advised focusing on names with RS of at least 70 — preferably 80–90 and up.
8/8. Liquidity (50-day average volume ≥ 500K) is a separate, optional filter.Passing isn’t a buy signal
An 8/8 tells you a stock is in a strong uptrend — not that you should buy it now. Entries should come when a buy point like a VCP forms, and only after you’ve set a stop. The Trend Template narrows where to look; timing and risk come next.