Ideally you want to focus on panics when stocks have been up multiple days and had big moves 150%+. When they are Over-extended from the original support/ breakout area, the volume can't sustain itself so it must either pull back and/or consolidate. Stocks that usually panic are under $5 and are most ideal when they fall 30-50 % in the morning/ midday because there is now enough range and time in the day for the stock to bounce effectively.
When this doesn't happen on a FRD, short sellers tend to get worried because from a technical perspective it means the selling pressure is not there like they thought it was going to be and now there is a greater risk of the stock squeezing higher. Momentum buyers can take advantage of this with the r/g move because there is clear risk parameters in place so long as you are entering the trade in the general r/g area.