I think its tough to be into a stock at exactly or very close to a bottom. You can get it right maybe one or two times, but not every time. So I usually wait till atleast some confirmations are there regarding some sort of bottom formation before taking a position.
Fundamentally careful analysis of the company and its prospects would provide with a rough valuation benchmark and that can lead to buy zones and we can throw in a margin of safety to be extra sure. But this picture often changes with market moods. In bearish markets, no low is too low and in bullish markets, no price is too high to buy.
Technically, @StageInvesting has mentioned most of the stuff which is relevant to look out for in bottom formation. I also try to have certain levels for a particular stock I am interested in, where I keenly watch stock price behaviour and if it confirms with what I am expecting, it gives me extra conviction in the process of bottom formation.
In most bottoming cases, we end up seeing tell tale signs of bottom formation on technicals, like double bottom formation, or taking support and consolidation at a support level, or a retracement level, or near previous highs etc. If these are accompanied with something like an RSI divergence or MACD positive crossover etc, then its even better.
However I am not a big fan of forecasting to a precise level. Basically I prefer to be approximately right rather then precisely wrong.
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