I gave a little it talk last night on complexity within markets and the question arose in the chat afterwards as to how do you know when a trader/advisor/etc is starting to panic about the market. I have a short quick and very complete answer which is based upon my own observation over the past few months. I get emailed a variety of bibs and bobs from all sorts of sources and I have noticed an interesting trend in the past few months. Traders who call themselves mechanical have started to plaster their charts with crap like Fibonacci lines, pitchforks and any all manner of oddities. This to me is a sign of panic – they have lost touch with both the market and its natural rhythms, although it is possible they were never in sync with the market and just got lucky in a bull market.
So if someone tells you they are a mechanical trader yet their charts are full of projections and magical thinking then ignore them. They dont have a fu#$cken clue