Mark Minervini's Trend-Template is a technical analysis tool used by traders to identify stocks that are in strong uptrends. It's based on a set of criteria that a stock must meet to be considered in a healthy uptrend. The template is part of Minervini's broader trading strategy, which emphasizes risk management, buying strong stocks in strong markets, and selling quickly if the trade doesn't work out. Here's an outline of the key criteria in Mark Minervini's Trend-Template: 1. Price Above the 150-Day and 200-Day Moving Averages (MA): - The stock's price should be above both its 150-day and 200-day simple moving averages. This indicates that the stock has been in an uptrend for a significant period. 2. 150-Day Moving Average Above the 200-Day Moving Average: - This shows that the medium-term trend is stronger than the long-term trend, reinforcing the idea of a healthy uptrend. 3. 200-Day Moving Average is Trending Up for at Least 1 Mont...
2-period RSI is a popular concept introduced by Larry Connors. Many traders are using this method in their strategy. There are two simple rules in the strategy that Larry Connors explained. For buying: • Price should be above 200-DMA (Long-term trend is up) • 2-period RSI should be below 10 (better below 5) For selling: • Price should be below 200-DMA (Long-term trend is up) • 2-period RSI should be above 90 (better above 95) He also recommended exiting trades in profit. Exit if stock goes above 5 DMA after buying and exit of stock goes below 5 DMA after shorting. You can use DMA, higher period RSI such as 5 period or 14 period, ADX, Super trend etc. Possibilities are endless. Bottom line is that he recommended e...
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