A technical screening strategy based on Mark Minervini's SEPA approach, using exponential moving averages to identify strong momentum stocks with specific price and trend conditions.
Explore complementary indicator rolesHow it works
The SEPA strategy works by systematically evaluating a stock's price performance against multiple exponential moving averages (EMAs) to determine technical strength. It applies eight specific criteria, including price positioning relative to 50, 150, and 200-day EMAs, ensuring that each moving average is trending upward and in the correct sequential order.
By checking additional conditions like price proximity to 52-week highs and lows, the strategy creates a comprehensive filter for identifying stocks with robust momentum. Traders use these signals to find potential entry points, waiting for confirmed breakouts above recent consolidation patterns with strong volume.
Why it may be useful
This signal provides traders with a disciplined, rules-based approach to identifying high-quality momentum stocks with strong technical characteristics. By using multiple moving averages and strict criteria, it helps eliminate emotional decision-making and provides a systematic method for stock selection.
The strategy's strength lies in its ability to filter out weaker stocks and focus on those demonstrating consistent upward price movement and technical strength. It offers traders a structured framework for identifying potential investment opportunities that align with growth-oriented trading strategies.
When to explore it
The SEPA strategy works best in bull markets or during periods of strong sector momentum, where growth stocks are likely to exhibit sustained upward trends. It is particularly effective for traders seeking systematic approaches to identifying technically strong stocks with potential for significant price appreciation.
Traders should apply this signal when looking to capture multi-week or multi-month trends, preferring stocks showing consistent upward movement and strong relative performance. It is most suitable for swing traders and investors who want a disciplined approach to stock selection based on technical momentum indicators.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
