KasautiJournal
Deep Dive

Minervini vs O'Neil — Which Methodology Fits Your Style?

The Trend Template and CAN SLIM are the two most influential growth stock frameworks of the last 40 years. Where they agree, where they diverge, and how to use both together on NSE.

April 20269 min readDeep Dive

The lineage

Mark Minervini has publicly acknowledged that William O'Neil's work was foundational to his own methodology. Both men identified that the greatest stock market winners throughout history share a common set of technical and fundamental characteristics in the weeks and months before their biggest advances. Both built systematic frameworks to capture those characteristics. The Trend Template is in many ways a distillation of the technical side of CAN SLIM — and Minervini has taken it further with additional precision tools like the Volatility Contraction Pattern (VCP).

What they agree on

Common Ground

  1. Only trade Stage 2: Both require stocks to be in established uptrends (Weinstein's Stage 2), above key moving averages, trending upward
  2. High relative strength: Both prioritise stocks outperforming the market — Minervini's 8th criterion (30%+ above 52W low) and O'Neil's 'L' factor (RS 80+)
  3. Near new highs: Both seek stocks near or at 52-week highs, not at bottoms
  4. Market cooperation required: Both require the broader market to be in an uptrend — fighting a bear market is not part of either system
  5. Volume matters: Both emphasise volume confirmation at breakout points

Three key divergences

1. Technical vs fundamental: Minervini's Trend Template is purely technical — eight moving average and price position criteria, zero fundamental requirements. CAN SLIM requires 25%+ quarterly earnings growth ('C'), three years of annual growth ('A'), and growing institutional ownership ('I'). In practice, Minervini does check fundamentals before entering, but they're not part of the template itself.

2. Quantitative vs pattern-based entry: Minervini's system is highly quantifiable — you pass or fail the template, period. The VCP adds a precise visual pattern for entry. O'Neil's system includes the Cup & Handle, which requires pattern recognition and is more subjective by nature. For a screener like Kasauti, the Minervini template is much easier to automate reliably.

3. Entry precision: Minervini focuses heavily on buying within 5% of a proper base breakout (the VCP pivot). O'Neil's Cup & Handle also has a precise entry (handle breakout on volume), but the pattern itself is broader and the cup can take months to form. Minervini's setups tend to be tighter.

The honest answer: Use both. Run Kasauti's Minervini filter to identify stocks with the right moving average structure. Sort by RS Rating (O'Neil's lens) to prioritise the strongest relative performers in that set. The overlap — stocks passing all 8 Trend Template criteria AND with RS 90+ — is the highest-conviction technical universe available on the NSE.

Head-to-head comparison

DimensionMinerviniO'Neil
Filter typePurely technicalTechnical + fundamental
Trend requirement8-point MA checklistRS 80+ & Stage 2
Entry patternVCP (tight base)Cup & Handle
Earnings requiredNot in template25%+ quarterly growth
RS minimumNot specified in template80+ required, 90+ preferred
Automatable?Yes — all 8 criteria quantifiablePartially — L, M, S quantifiable
On KasautiFull 8/8 filterRS Rating + RS Leaders preset

The practical Kasauti workflow

Click the Minervini filter. This gives you every NSE stock currently passing all 8 SEPA criteria — your Stage 2, well-structured universe. Now sort the results by RS Rating, descending. The stocks with the highest RS Ratings in the Minervini-filtered universe are the ones where both methodologies agree most strongly. These are the setups both traders would find interesting. Check those first.

Frequently Asked Questions

Is Minervini's method better than O'Neil's CAN SLIM for Indian markets?

Neither is universally better — they measure different things. Minervini's Trend Template is a purely technical 8-point checklist that's faster to apply and easier to automate. CAN SLIM includes fundamental factors (earnings growth, institutional ownership) that add another layer of conviction. In practice, most successful Indian position traders use the Trend Template as a screener and then check for strong earnings growth (the 'C' and 'A' in CAN SLIM) before taking a position.

Do Minervini and O'Neil agree on which stocks to buy?

Yes, on the core principle: both require stocks to be in a strong Stage 2 uptrend, near 52-week highs, with high relative strength. Where they diverge is on fundamentals (O'Neil requires strong earnings growth; Minervini's template is technical-only) and on pattern recognition (O'Neil centres on the Cup & Handle; Minervini centres on the VCP).

Can I use both Minervini and O'Neil filters on Kasauti simultaneously?

Yes. Run the Minervini filter to surface stocks in strong uptrends, then sort by RS Rating to prioritise the ones with highest relative strength — this is the O'Neil lens applied on top. Stocks that pass Minervini's 8 criteria AND have RS 90+ represent the intersection of both methodologies.

What is the VCP (Volatility Contraction Pattern) and how does it relate to Cup & Handle?

Both patterns identify periods of institutional accumulation before a major breakout. The Cup & Handle is O'Neil's broader framework — the cup bottom takes weeks to months to form. The VCP (Minervini's Volatility Contraction Pattern) describes the specific price action as a stock forms its base: volatility decreases in contracting waves, signalling a transfer from weak hands to strong hands. The VCP tends to be tighter and more precise than the Cup & Handle.

Which methodology is better for NSE smallcaps specifically?

Minervini's Trend Template is more reliable for NSE smallcaps because it doesn't require fundamental data, which can be patchy for smaller Indian companies. The pure technical structure — moving average alignment, proximity to highs, volume — works the same on smallcaps as on largecaps. CAN SLIM is harder to apply to NSE smallcaps because quarterly earnings data quality varies significantly.

Apply both methodologies to NSE — one click each

Kasauti has Minervini and O'Neil filters built in. Run them, sort by RS Rating, find the overlap.

Try Kasauti Free →

Disclaimer: This article is for educational purposes only and does not constitute investment advice or stock recommendations. Past performance does not guarantee future results. Please consult a SEBI-registered investment advisor before making investment decisions. Kasauti is a stock screening tool and does not provide buy, sell, or hold recommendations.