Mean reversion buy on earnings crash of $LRN

$LRN has been trading in a bullish channel for over a year now, and now is retesting the lower end of the channel's support. I'm entering a long position as the previous two candles were a doji and inverted hammer, both being strong signs of reversal. Additionally, at open, the stock gapped down below the lows on both the previous two candles, giving a good risk/reward ratio for this trade. I'm aiming to sell when the price crosses back to the moving average 50, for a small swing, but will cut my losses if the price falls below ~33.17, around where the previous trough's low was.

Trade fermée manuellement:

I closed out my position in $LRN early for a 2.9% profit after the market closed with a dragonfly Doji (a reversal candlestick pattern).