I am taking the above daily chart of UBC as an example to point how a stock gains the potential to recover after a selling climax.
These are the points to consider,
1.If it makes a sharp first rally. this is the first signal of strength.
2. it starts to make higher lows forming new Support and Resistance zones. ( marked 1,2,3 on the chart)
3. Potential buy points are when the stocks dips for the 3rd time into a support zone. or you wait for the stock to break out and make a pullback close to the resistance level. (then stop loss below resistance)
4. stop loss should be below one of the 3 support levels according to individual preference.
Your stops should not be very tight. you need to be a bit more generous.