Male fiddler crabs, Uca pugilator (Crustacea: Decapoda), respond to conspecifics by claw waving, and to predators by freezing or escape. In field experiments it was found that this distinction was not made on the basis of angular size and speed, nor was shape important. The remaining possibilities were either the absolute size of the stimulus, determined from angular size and distance, or the position of the stimulus relative to the horizon. To distinguish between these, a crab was placed in a glass dish, and moved black stimuli on a white background, at a distance of 22 cm. Stimuli below the crab's horizon hardly ever evoked escape. However, identical stimuli partially or wholly above the crab's horizon produced escape responses whose frequency varied with the angular size of the stimulus. Halving the distance of the stimulus showed that it was angular and not absolute size that determines escape frequency; and experiments with a tilted horizon showed that it is the position of the stimulus relative to the eye equator that is important, rather than the geographical horizon itself. It has been concluded that crabs categorize stimuli as dangerous or otherwise by their position relative to the crabs’ visual horizon.