Odaily News Brian Quinlavin, director of markets at Saniment, said in an Oct. 2 blog post that when five main "fear" words are used frequently on social media, it can help traders determine if the market is overly panicked and if a breakout is possible. "When the market feels low, people often start using specific words more frequently. These panic keywords, often referred to as 'FUD' words, can actually be a sign that things are about to turn positive." The first word is "crash." When everyone is talking about a crash, it usually means that prices are plummeting and traders are going into panic mode. Ironically, when the word "crash" is mentioned the most on social media, it's usually when prices start to recover. The same is true when the words "sell" and "dead" appear on the social platform. Quinlavin said that just like "crash," when traders start using the words "sell" and "dead" frequently, it usually means that a recovery is coming, creating "opportunities for the brave." The fourth panic keyword is "crackdown," referring to regulatory and legal pressures that make traders feel constrained, worried about government actions or the potential outcome of new or ongoing lawsuits. "Such concerns can drive prices down, but often lead to good buying opportunities, especially when panic appears to be exaggerated," Quinlavin said. The fifth word is "liquidation," which is a double-edged sword, depending on the direction of the market. Often, investors on social media tend to use the word "liquidation" when celebrating those who shorted the market and suffered losses. Quinlavin said that an increase in short positions "has historically been a great opportunity for new buyers to enter." He concluded that taking a "contrarian approach" to social media sentiment "is often" the right decision. (Cointelegraph)