RE:2 QuestionsWell, that's the question isn't it. There are no easy answers much of the time (although sometimes it's obvious).
(1) Volume is important - if the stock has been going down and there's a lot of volume one day (or week) it's probably capitulation and investors are throwing in the towel. After a washout like that the stock starts to go up as everyone who is going to sell has done so.
(2) The price trend is important - if the price is going down and volume is significant, obviously the sellers are overpowering the buyers.
But when the price is moving sideways a number of other factors can provide clues and it's not always easy to discern. I thought the stock had hit bottom @ 70 cents a couple of weeks ago and bought some more shares. Since I am a longer-term investor I look to fundamentals and don't get too fussed about having jumped in too early. But if a person is trading (shorter term than investing) one will want to use various technical indicators (a whole science in itself). I'll let others elaborate as that's not what I do. Hope that helps.