Minervini Trend Template (EMA)

The Minervini Trend Template (EMA) indicator helps traders visually identify technically strong stocks in ideal buy conditions by adapting Mark Minervini’s Specific Entry Point Analysis (SEPA) strategy logic using Exponential Moving Averages.

Usage

The Minervini Trend Template (EMA) is primarily used to identify momentum breakouts and "Stage 2" uptrends. To satisfy the trend template, eight specific technical conditions must be met simultaneously:

• EMA Alignment: The 50-day EMA must be above the 150-day EMA, and the 150-day EMA must be above the 200-day EMA.
• Price Positioning: The current price must be above the 50, 150, and 200-day EMAs.
• Trend Confirmation: The 200-day EMA must be in an established uptrend (higher than its value 20 periods ago).
• Relative Strength: The price must be within 25% of its 52-week high and at least 30% above its 52-week low.

When these conditions are met, the chart background turns green, indicating a SEPA-compliant environment. Traders often look for a "BUY" label which triggers when price breaks above a 20-day high while the trend template is active. This signal is intended to capture breakouts from consolidation patterns like cup-and-handles or flat bases.

Details

This implementation utilizes Exponential Moving Averages (EMAs) rather than Simple Moving Averages (SMAs). EMAs place greater weight on recent price data, allowing the indicator to respond more quickly to trend shifts and momentum changes. The script also includes automated exit logic based on fixed risk/reward percentages or a breach of the 50-day EMA, helping traders manage their positions according to disciplined momentum trading principles.

Settings

Inputs

• EMA 50/150/200: Adjusts the period length for the three primary moving averages used in the trend template.
• 52-Week High/Low Lookback: Defines the lookback period (default 252 bars) to determine the yearly price range.
• Stop Loss %: Sets the percentage distance for the automated stop-loss level (labeled "SL").
• Profit Target %: Sets the percentage distance for the automated take-profit level (labeled "TP").

FAQ

How do I use this indicator? You can apply it to any chart, though it is optimized for the daily timeframe. Look for the green background to confirm a stock is in a "Power Trend" before looking for breakout entries.

What does the "EMA Exit" label mean? This appears when a price closes below the 50-day EMA while a trade is active, signaling a potential loss of momentum and a technical exit point.

How can I access this script? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.