A year ago, Profitable Trading developed a new indicator based on momentum.

Using this indicator, we’ve been able to identify, and recommend to readers, some of 2014’s biggest winners. For example:

— Hi-Crush Partners LP (NYSE: HCLP), 66.1% gain
— ANI Pharmaceuticals (Nasdaq: ANIP), 114.1% gain
— Bitauto Holdings (NYSE: BITA), 242.2% gain
— Amkor Technology (Nasdaq: AMKR), 57.7% gain

We locked in all of these gains in less than a year. But as you can see, these stocks don’t have much in common.

Bitauto Holdings, for example, is a billion-dollar Chinese company focused on providing Internet content for the auto industry. ANI Pharmaceuticals develops branded and generic drugs. And Hi-Crush produces a specialized mineral used to increase oil production.

#-ad_banner-#Yet they were all identified by the same indicator before they went on to deliver huge gains. It’s a unique indicator that doesn’t rely on just one technical or fundamental tool to identify potential winners.

Instead, this indicator is derived by combining two of the market’s most effective “triggers” — a technical trigger and a fundamental trigger.

The technical indicator, or “Trigger #1,” has been proven to beat the market by traders and academics alike. You might be familiar with it; it’s called relative strength, or simply RS.

RS assigns a numerical score from 0 to 100 to a stock based on its price performance relative to other stocks in the market. This gives you a way to quantify the strength of a stock’s performance in the recent past, which often is a harbinger for how it is likely to perform going forward.

Because stocks that are outperforming their market peers tend to continue to outperform over the next few months, and sometimes over years, a high RS is an essential component when identifying big potential winners.

But relative strength is only half the story.

While Trigger #1 helps us find stocks likely to move higher, “Trigger #2” ensures that the underlying company has solid financials, as well as enough resources to keep its business growing.

When combined, these two triggers add up to a combined score, which can range from 0 to 200. The higher the number, the more likely the stock will continue to outperform in our experience.

That’s why I’m excited to tell you about Micron Technology (Nasdaq: MU), a stock with a sky-high score of 189.

We originally recommended shares one year ago, but we believe it still has substantial upside potential. In fact, the market’s latest pullback provides new investors with a buying opportunity near support.
 

Micron is one of the largest manufacturers of computer memory “DRAM” chips in the world. The stock has had its share of ups and downs over the years, but now it is positioned well to deliver long-term gains.

After the tech bubble burst in 2000, the microchip industry spent over a decade consolidating. In the end, we were left with just a few large companies that survived — and Micron is one of those survivors.

While Micron struggled during this period, it eventually made it through the gauntlet, and now analysts believe the company is on track for steady growth.

After earning $3.23 a share in fiscal year 2014 (which ended in August), analysts expect earnings per share (EPS) of $3.68 in 2015 and $4.11 in 2016. Earnings growth is expected to average 15% per year over the next five years.

Based on the company’s growth rate and next year’s estimated earnings, MU could be worth more than $55 a share — or close to double its current prices.

Of course, the key to assessing MU resides in its 189 score.

We’ve used stocks’ score to identify the 7th, 9th, 11th and 16th best-performing stocks of 2014 so far — and generate an average gain of 109%. It has even pegged 29 stocks right before they made double-digit percentage jumps within a month. So you can understand why we’re bullish on MU.

If you want to learn more about the indicator, I invite you to read our new report. In it, you’ll get the name and ticker of a stock it’s predicting to be a top performer in the next 12 months. This report will only be available for a few days, so if you have any interest in reading it, click here now.