Mark Minervini — a two-time U.S. Investing Championship winner, with roughly 155% in 1997 and 334% in 2021 — 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.What the eight conditions actually caught
History makes the filter concrete. Nvidia (NVDA) sat more than 60% below its high at the October 2022 bear-market bottom and failed most of the conditions. Through early 2023 the stock reclaimed its 200-day line, the moving averages restacked one by one, and by the time its late-May guidance shock produced a one-day gap of roughly 24%, it was already trading near its highs with top-tier RS — the conditions had been satisfied before the fireworks. The stock more than tripled that year. The same sequence — conditions first, then the big move — repeats across markets and cycles; it is the whole point of the checklist.
Balance matters, though. Most stocks that pass 8/8 do not turn into monsters. Many go sideways; some fail outright. The checklist doesn't predict winners — it narrows your attention to the structural setup (stacked averages, proximity to highs, high relative strength) from which the big winners, when they come, almost always start.
The passing count is itself a market signal
Beyond individual stocks, how many names pass 8/8 is valuable information. In a healthy bull phase the count swells into the hundreds; in a bear market it withers toward zero — as it did through 2022, which was in itself the warning that trend-following conditions were hostile. When the count starts climbing steadily off a low base, a new cycle is often beginning. Trend Screener records this number daily on the Market page and feeds it into the Trend Strength Score. The market breadth article covers this lens in depth.
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.
A practical sequence — from screen to trade plan
- Check the market firstOn the Market page, read the index trend and the direction of the passing count. In a defensive regime, tighten every criterion below.
- Narrow to 8/8 namesOpen the screener and keep the 8/8 list. RS 90+ inside a leading industry group ranks highest.
- Look for a buy pointOn each candidate’s chart, check whether a base (VCP, cup-with-handle) is maturing and volume is drying. No setup — stay on the watchlist and wait.
- Decide risk before entryEnter on a confirmed pivot breakout, with the stop (within −7–8%) and the position size computed from it in advance.
Frequently Asked Questions
How should I treat a 7/8 stock?
It depends on which condition is missing. "RS at 68, everything else green" is a near-miss worth watching — it may join the 8/8 list any day. "The 200-day is still falling" means the long-term trend itself hasn't turned; that's simply too early. Sorting by the number of passed conditions turns the 7/8 group into a useful on-deck list.
Why 150 and 200 days? Can I use other windows?
They correspond to roughly 30 and 40 weeks — the horizons institutions have watched since Weinstein's era. Because so many participants watch the same lines, they act as real support and resistance in a partly self-fulfilling way. Slightly different windows tell a similar story, but the standard settings keep you looking at what everyone else is looking at.
Why do some 8/8 stocks still go nowhere?
Because 8/8 is a diagnosis of the present trend, not a promise about the future. Some passing names rest in bases for months; some get dragged down by a market correction. That's why passing (step 1) must be followed by a proper buy point (step 2) and a stop-loss plan (step 3).
How often should I re-check the conditions?
They're computed on daily closes, so once a day after the close is enough — Trend Screener recomputes the full universe automatically each trading day. Chasing intraday flickers of conditions turning on and off is noise, not signal.