Anywhere from 5–20% on average per trade. Some rare 50%+. Can move the needle on a small account fairly quickly. Once your account gets to a certain level this style of trading is no longer relevant as you can no longer put a large position size on each trade. Even a 50% gain with a 5% position size is not that great for the account bottom line.

The panic level is simply an extremely oversold level. Due to the low float and lack of liquidity these microcaps can sell sharpely, but they have a tendency to immediately retrace most of the move. Thin order books, algos, etc. can be part of the reason. These are inefficient markets, so you get inefficient price moves.

This can be done visually, as I did it, or it can be done with something such as RSI or Bollinger Bands. Google and research “mean reversion” trading strategies. That is essentially what this is. Once something gets overstretched above or below the mean, or average price, it has a tendency to snap back.

I would suggest looking at a lot of charts and seeing what patterns you can see. That will help to visualize what I am talking about.