DIALCO Share Analyser

SEPA Framework

Mark Minervini's Specific Entry Point Analysis — the methodology behind every DIALCO scan

What is SEPA?

SEPA (Specific Entry Point Analysis) is a disciplined stock selection methodology developed by Mark Minervini, a US Investing Champion. It combines Stage Analysis (identifying where a stock is in its price cycle) with an 8-point Trend Template (confirming the stock is in a healthy Stage 2 uptrend) and the VCP (Volatility Contraction Pattern) for precise entry timing.

DIALCO applies all 86 Minervini SEPA tests to every ASX-listed stock in each daily scan, scoring each stock and flagging those meeting the full criteria.

The 8-Point Trend Template

All 8 criteria must be met for a stock to qualify as a full Minervini Trend Template pass.

#1Trend Template

Current price above 150-day and 200-day MAs. 150-day MA above 200-day MA. 200-day MA trending up for at least 1 month.

#252-Week Position

Current price within 25% of 52-week high. Current price at least 30% above 52-week low.

#3Relative Strength

Relative Strength (RS) rating of 70 or higher — the stock is outperforming at least 70% of the market over the last 12 months.

#4Moving Average Stack

50-day MA above both 150-day and 200-day MAs. Current price above 50-day MA.

#5Earnings Growth

Current quarterly EPS up 25%+ year-over-year. Annual EPS growth positive over the last 3–5 years.

#6Sales Growth

Revenue growth accelerating or maintaining 20%+ over recent quarters.

#7Profit Margins

Pre-tax profit margins at or near all-time highs for the company.

#8Return on Equity

Return on equity of 17% or higher. Minervini considers this a proxy for business quality.

Stage Analysis

Every stock cycles through four stages. Minervini only trades Stage 2.

Stage 1 — Neglect / Basing

Price consolidating after a downtrend. Volume contracting. MAs flattening. Avoid — no edge.

Stage 2 — Advancing

Price breaking above Stage 1 base on volume. All MAs trending up in correct order. This is the ONLY stage to buy.

Stage 3 — Topping / Distribution

Price stalling near highs. Volume on up days declining. MAs starting to flatten. Begin reducing exposure.

Stage 4 — Declining

Price below all MAs in downtrend. Never buy. Short only for advanced traders with specific edge.

VCP — Volatility Contraction Pattern
The entry timing signal within a Stage 2 stock

A VCP forms when a Stage 2 stock corrects and consolidates in a series of progressively tighter price contractions on declining volume — typically 2–4 contractions before a breakout pivot point.

DIALCO detects VCPs automatically and grades them A (tightest), B, or C based on the depth and symmetry of contractions. Grade A VCPs in full Trend Template stocks represent the highest-probability setups in the Minervini system.

VCP A — Tight, 2–3 contractionsVCP B — Moderate, 3–4 contractionsVCP C — Wider, still contracting

This tool is for educational and informational purposes only. It does not constitute financial advice. Always do your own research and consult a licensed financial adviser before making investment decisions.