The eight structural parameters Mark Minervini uses to identify stocks in a position of strength — before they make their largest moves.
Methodology reference · NSE context
Definition
SEPA Criteria, originally developed by Mark Minervini, stands for Specific Entry Point Analysis and focuses on price, volume, and relative strength. In the NSE position trading context, it is adapted to screen for stocks exhibiting tight consolidations, increasing volume, and strong relative performance. The criteria help traders focus on stocks with the highest probability of sustained upward movement over weeks to months.
Structural convergence: tightening volatility, constructive moving-average support and a defined pivot area.
For NSE position traders, SEPA Criteria narrows the universe to stocks that have recently broken out of a consolidation phase on above-average volume. The approach emphasises price action patterns such as tight closes and orderly pullbacks within a longer-term uptrend. It avoids fundamental analysis, relying instead on technical structure and volume confirmation to gauge institutional accumulation.
A common misconception is that SEPA Criteria guarantees immediate breakout success. In reality, the criteria only identify high-probability setups, and many candidates will fail or require multiple attempts before a sustained move begins. Position traders must combine SEPA screening with proper risk management and patience to allow time for the pattern to develop.
Volume should be at least 50% above the 50-day average on the breakout day. Prior to the breakout, volume should be declining or stable during the consolidation phase. This pattern suggests institutional accumulation without excessive public participation.
Yes, SEPA Criteria can be applied to stocks in a continuing uptrend, provided they show a period of consolidation or pullback on declining volume. The key is to identify a fresh entry point after a pause, not to chase extended moves. This approach helps position traders enter with a favourable risk-reward ratio.
Methodology note:
This glossary page summarises technical-analysis concepts in an NSE research context.
It is educational and analytical content, not investment advice or a stock recommendation.